Crypto lender Babel Finance raises $80m, reaches $2bn valuation

The Hong-Kong based crypto lender has applied for licences in the UK and Luxembourg.

Image source: Del Wang/Babel Finance.

Hong Kong-based crypto lender and asset manager Babel Finance has secured $80m in a Series B round — double the amount it raised a year ago in its Series A.

With this second round of cash, the company has now reached a $2bn valuation just four years after it was founded.

It intends to use the money to fund its global expansion, having already applied for licences in countries around the world, including the UK, Luxembourg and Hong Kong.

“The crypto financial market is full of opportunities and hidden risks,” Babel Finance co-founder and CEO Del Wang said.

“From the perspective of short-term profits, the retail market and Altcoins may have higher profit margins, but we pay more attention to the long-term development of the industry and aim to lead in institutional financial services and innovation.”

One of the largest services providers to institutions in the crypto financial market, the company works in Bitcoin, Ether and stablecoins.

“As the crypto financial industry becomes more institutionalized, our mission at Babel Finance is to explore and participate in the building of the fundamental financial order and rules for the industry,” Wang added. 

The round was led by Jeneration Capital and 10T Holdings, and investors included crypto venture firms Dragonfly Capital, an existing shareholder, and Circle Ventures

“Babel Finance has opened up a market with high barriers to entry and great value in the emerging field of institutional investor services in crypto,” 10T managing partner and CEO Dan Tapiero. 

A year ago, Babel Finance managed to take advantage of the growing interest in cryptocurrencies for a successful rase led by Sequoia and Tiger Global among others.

This year, the round comes as the crypto market is trying to recover from the $60bn collapse of TerraUSD and Luna.

Babel Finance has no exposure to these currencies and has emphasised a focus on the “long-term development of the industry” to overcome the current uncertainties. 

“Babel Finance is in the right place at the right time with the right products, serving the groundswell of demand from institutional investors and family offices for sophisticated digital asset products and services,” BAI Capital partner William Zhao said.