Crypto lender Matrixport seeks 0 million in funding despite lending crunch

Crypto lender Matrixport seeks $100 million in funding despite lending crunch

Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is about to raise $100 million in funding despite the ongoing crypto market crisis.

Lead investors have already committed $50 million for Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported on Nov. 25. The deal is not yet finalized as Matrixport is still looking for investors for the second half of the round.

According to the company, the new round is part of Matrixport’s regular financing agenda. “Matrixport routinely engages with key stakeholders as part of its normal business, including investors keen to participate and enable our vision as a digital asset provider,” said the company’s PR manager Ross Gan.

Matrixport’s new funding comes a year after the firm completed a $100 million Series C funding round in August 2021, becoming a unicorn with a $1 billion valuation.

The fundraising was led by major global venture capital firms, including DST Global, C Ventures and K3 Ventures. Other contributors to the round included major industry investors such as Tiger Global, Qiming Venture Partners, CE Innovation Capital, A&T Capital, along with existing investors such as Polychain, Dragonfly Capital, Lightspeed, IDG Capital and others.

According to Bloomberg data, Matrixport handles $5 billion in trades each month and has tens of billions of dollars in assets under management and custody. The company reportedly employs close to 300 people.

Established in February 2019, Matrixport is one of the largest cryptocurrency lenders in Asia, offering a wide range of crypto services, including trading and custody. The company also offers cryptocurrency and stablecoin loans, as well as zero-cost loans with 0% interest and liquidation protection.

Matrixport is one of the few crypto lending platforms that doesn’t seem to have been affected by the ongoing cryptocurrency lending crisis. As previously reported by Cointelegraph, some of the biggest crypto lending platforms, including Celsius and BlockFi, have faced major problems this year due to the ongoing bear market and the accompanying cryptocurrency lending crisis.

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Wu’s crypto company also said it was not too affected by the ongoing FTX contagion, and reported some problems due to the crash of Sam Bankman-Fried’s crypto exchange. November 11, Matrixport reported that 79 of its users suffered losses in the wake of FTX issues, adding that the affected products included BTC Fixed Income Products and Victoria BTC Fund Products.

“We must emphasize that Matrixport’s products are subject to strict segregation from each other, so that a single affected product will not affect the other products as the underlying asset and fund flow are separated,” the firm stated.