Babel Finance, a crypto company, raises $80 million and is valued at $2 Billion (Report). Babel Finance — a cryptocurrency service provider that offers digital asset lending — reportedly secured $80 million in a Series B financing round. The investment boosted the company’s valuation to $2 billion.
Babel’s Focus on the Long Run
According to Reuters, the fundraising was led by top venture capital firms such as Circle Ventures and 10T Holdings. The investors included family offices in the Asia-Pacific region. The $80 million is not Babel Finance’s first closed financing round. It raised $40 million last year from institutional investors such as Sequoia Capital China and Zoo Capital. Speaking on the move, Del Wang — Chief Executive Officer of the company — noted that the crypto market is “full of opportunity and hidden risks.” However, Babel Finance remains engaged with the sector as it believes in its success in the long-term: “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.” The executives further argued that the digital asset sector has become more “institutionalized.” As such, the firm will aim to “explore and participate in the building of the fundamental financial order and rules for the industry,” Wang concluded. Babel Finance is based in Hong Kong and has already applied to obtain business licenses in other countries, such as Luxembourg or the United Kingdom. With around 500 clients, the cryptocurrency lender finished 2021 having a loan balance exceeding $3 billion and a monthly average trading volume of $800,000,000 in derivatives.
What’s new With Crypto in Hong Kong?
In January, the authorities of China’s special administrative region presented plans to introduce a regulatory framework for cryptocurrencies by July this year. The legislation will make Hong Kong a hub for digital assets in the East Asian region. However, the Hong Kong Monetary Authority(HKMA) has a completely different view on stablecoins. It believes they can harm financial stability. As such, they might be subject to increased scrutiny. The blockchain platform Huobi Technology announced its intention to launch ETFs tracking cryptocurrencies in Hong Kong. The financial product is suitable for investors with assets less than $1,000,000. Samsung Asset Management announced a few weeks back that it was willing to list a blockchain-focused ETF before July. The product will be the first to offer cryptocurrency exposure in Asia if it goes live.