The Singapore-based cryptocurrency lender Matrixport is looking to raise an additional $100 million in the capital.
The collapse of FTX and the bear market has had no effect on the company.
This development comes at a time when major crypto lenders like BlockFi and Genesis have been experiencing severe liquidity constraints as a result of the FTX collapse.
The Singapore-based crypto lender stated that they have received a commitment of at least $50 million from lead investors. Despite the crypto winter this year, the company is aiming for a $1.5 billion valuation, up 50% from $1 billion last year, said people familiar with the matter.
The deal is not yet finalized because the company is looking for investors for the other half of the round. The company's public relations executive, Ross Gan, also confirmed the fundraising plan. He stated:
“Matrixport engages with key stakeholders on a regular basis as part of its normal course of business, including investors eager to participate in and enable our vision as a provider of digital assets financial services.”
Jihan Wu, a crypto billionaire, founded Matrixport Technologies. The company provides retail and institutional players with a variety of cryptocurrency services such as trading, custody, and structured products.
In Asia, it competes with players such as Babel Finance, which also experienced a liquidity crisis following the Terra ecosystem's collapse earlier this year.
The crypto winter of 2022, as well as the failure of key players such as Terra and FTX, have pushed crypto lenders over the edge. In the midst of these high-profile crypto failures, there has been widespread concern about poor regulatory measures and a lack of safeguards to protect investors' digital assets.
Matrixport, on the other hand, stated that it is not at risk of going bankrupt following the FTX collapse. However, dozens of its customers have suffered significant losses as a result of their exposure to FTX.
Matrixport claims to handle $5 billion in cryptocurrency trades each month. As per reports, it also manages and custody tens of billions of dollars in assets.