Babel Finance has just announced closure of a series A financing round that has secured $40 million. This comes at a time when institutions, especially venture capital firms, are seeking exposure in the hottest cryptocurrency finance companies.
High calibre venture capital firms such as Zoo Capital, Sequoia Capital China, Dragonfly Capital, BAI Capital and Bertelsmann, and Tiger Global Management, all participated in the round, together with other investors who have pre-existing investment.
Flex Yang, CEO of Babel Finance offered his views on the funding round:
"The alliance with our new investors from traditional finance is a critical step for us to offer more innovative products, strengthen compliance controls, and ultimately provide a full suite of reliable services to meet the growing demand from mainstream investors who are keen to add crypto assets in their portfolio,"
Babel Finance is one of the largest cryptocurrency derivatives traders in the field, with an $8 billion monthly trading volume, and around 500 institutional clients on the books. The fast growth and performance of the company are two of the reasons it has had little problem attracting such a high calibre of investor across the globe.
According to Del Wang, Co-founder of Babel Finance:
"Babel Finance aims to become a global powerhouse at scale and bandwidth in the industry matching our counterpart DCG in the US. Continuing the momentum from last year, Babel's growth will be further fuelled by financings, investments, M&As, and strategic partnerships with investors that are aligned with our vision,"
The team at Babel Finance has decided to concentrate resources on global compliance, given this huge niche in the cryptocurrency sector. It is aiming to spearhead best practices for cryptocurrency compliance, and for this reason it is applying for licenses in the jurisdictions of North America, Europe and Asia.
Bo Feng, Managing Partner at Dragonfly Capital, one of the recent investors into the series A funding round said:
"Babel Finance has an ambitious goal of building a robust financial infrastructure for the crypto industry, which goes in tandem with the evolving trend towards the institutionalization of this industry. We are confident in their potential to become an international leader,"
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.