The co-founder of Bitmain Technologies Ltd., Wu Jihan has garnered a team of former employees of the mining firm in order to launch a new cryptocurrency financial services startup, hoping to capitalise on Bitcoin’s resurgence.
According to the Chief Executive Officer, Ge Yuesheng, the new project has been dubbed Mtrixport, which is a one-stop platform for over-the-counter trading, custody for cryptocurrencies and lending. The new venture went live on Monday after it spun off from Bitmain back in January when the world’s biggest producer of crypto-mining rigs ran into a ‘cash crunch’.
Ge has said that along with a batch of global venture firms and Bitmain, Wu is a big shareholder. Stationed in Singapore, Matrixport has a team of around a hundred workers with many of these being let go by Bitmain beforehand.
“We are closely tied to Bitmain by our origin,” Ge said in an interview. “But because we operate in different businesses, we are partners rather than competitors.”
No one from Bitmain has commented on the firm or Wu’s connections to Matrixport just yet. According to the Chief, there will be further updates in regards to the firms funding at a later date.
Matrixport aims to challenge the likes of BitGo Inc. and Genesis Global Trading Inc. in the United States as a firm move to develop financial services for professional crypto-coin investors. It’s one of a crop of fading companies aiming to ride an upswell in Bitcoin interest.
Ge says Matrixport will use connections and expertise at Bitmain to target the needs of Chinese crypto-miners, among the biggest in the world.
As reported by Bloomberg:
“Matrixport marks the latest venture from entrepreneur Wu. The billionaire has already stepped down from his role as Bitmain co-CEO but still stands to benefit when it goes public: the mining giant is seeking around $300 million to $500 million from a U.S. share sale as soon as the second half of this year, Bloomberg News has reported.”
The new startup is in fact just outside of mainland China which evades the crypto-trading ban going on in the nation.