Crypto Lender Matrixport Targets $100 Million Funding

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Matrix­port, the Sin­ga­pore­an Cryp­to lend­ing firm, has launched a $100 mil­lion fund­ing effort at a $1.5 bil­lion val­u­a­tion. The com­pa­ny claims it has secured com­mit­ments totalling $50 mil­lion at the afore­men­tioned val­ue, but it is still on the look­out for oth­er investors to fill out the bal­ance. This round of fund­ing comes on the heels of a $100 mil­lion Series C round led by DST Glob­al, C Ven­tures, and K3 Ven­tures in August 2021 that gave the com­pa­ny a $1 bil­lion valuation.

Matrixport’s hefty price tag and the market’s fragility

Crit­ics may argue that the val­u­a­tion is on the high­er side, con­sid­er­ing the cur­rent mar­ket con­di­tions exac­er­bat­ed by the col­lapse of FTX. How are things at Matrix­port, and is the cost rea­son­able? The firm claims to man­age assets worth $10 bil­lion, to have issued loans totalling $700 mil­lion, and to employ more than 290 people.

The firm’s high tar­get on the fundrais­ing front does not mean that the com­pa­ny is immune to FTX’s bank­rupt­cy. Matrix­port just announced that their Bit­coin-linked fixed-income pro­gram has been impact­ed by the col­lapse of the exchange. The expo­sure affect­ed all BTC Fixed Income Prod­ucts and Vic­to­ria BTC Fund Prod­ucts the com­pa­ny offers. In total, 79 of its cus­tomers lost mon­ey as a result of the risks asso­ci­at­ed with these offer­ings. Matrix­port, on the oth­er hand, insists that nor­mal oper­a­tions have not suf­fered as a result of the recent events at FTX and that the com­pa­ny faces no risk of collapse.

One of the lead­ing cryp­tocur­ren­cy lenders in Asia, Matrix­port pro­vides a full spec­trum of cryp­tocur­ren­cy ser­vices, includ­ing trad­ing, cus­tody, and loans backed by cryp­tocur­ren­cy. The cor­po­ra­tion says it main­tains a strict sep­a­ra­tion of its prod­ucts in light of the intense com­pe­ti­tion in the mar­ket. Since it iso­lates the under­ly­ing asset and fund flow, the impact of a prob­lem with one prod­uct does not spread to the others.



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