Matrixport, a crypto-financial services platform that bills itself as a neo-bank, announced the close of a Series C fundraise late Sunday evening, raising $100 million at a pre-money valuation of more than $1 billion.
Matrixport, which was founded in 2019 as a spin-off of Bitmain, is a major crypto player in Asia, with approximately $10 billion in assets under management (AuM). Its platform provides a variety of services, such as trading, lending, and fixed-income-like products.
“We are not an exchange, we are not a wallet,” Matrixport CEO John Yuesheng Ge told The Block in an interview. “We are a cryptocurrency bank.”
According to a press release, the round was backed by partners from DST Global, C Ventures, and CE Innovation Capital. Tiger Global, Polychain, and Dragonfly are among the other investors.
Matrixport’s announcement of a fundraise follows similar announcements by a long list of crypto firms, including Fireblocks, Paxos, and crypto exchange FTX. According to a spokesperson, Matrixport has raised $129 million to date.
Given the firm’s Asian origins, Matrixport’s raise is significant. China has recently cracked down on bitcoin mining, causing several firms operating in the region to flee. Matrixport, which previously targeted Chinese clients, is adapting to the new regulatory environment by shifting its focus away from the country and toward clients in other Asian jurisdictions. The company’s headquarters are in Singapore.
Despite the move, Ge said it was able to keep its current AuM.
“We don’t want to break the rules, so we’re moving our people to other Asian countries right now,” Ge explained.
Ge stated that interest in the company has been boosted by its yield offerings, which offer a higher return than the average bank. The company provides a way to invest in funds with yields greater than 4%. According to a description on the Matrixport platform’s mobile app, funds parked in those funds are used for “crypto-backed lending, leverage trading (bull or bear), or other lending business of Matrixport platform.”
Wu Jihan, former chairman and co-founder of Bitmain, founded Matrixport with his own money. In 2020 that it was looking to raise $40 million at a $300 million valuation.