Babel Finance, a Hong Kong-based crypto-finance firm, closes an $80 million Series B at a $2 billion valuation

Babel Finance, a Hong Kong-based crypto financial services provider, has secured $80 million in a Series B funding round at a $2 billion valuation, the company announced on Wednesday.

Leading Series B investors are Asia-based growth capital investment firm Jeneration Capital and digital asset-focused growth capital fund 10T Holdings, as well as existing shareholders Dragonfly Capital and BAI Capital. Circle Ventures and a number of family offices in the Asia-Pacific region participated in the transaction.

Founded in 2018, Babel is primarily involved in crypto lending and trading for a select group of institutional clients, including crypto-native institutions, traditional financial institutions such as banks and investment funds, as well as accredited investors and very wealthy families. desks.

Its focus on institutional clients makes it unique compared to other crypto financial services platforms such as Matrixport, which is led by Bitmain Technologies founder Wu Jihan. Matrixport, which serves both institutional and retail clients, hit a unicorn valuation of over $1 billion in October 2021 after raising $100 million in a Series C round.

“Babel Finance is in the right place at the right time with the right products, responding to the wave of demand from institutional investors and family offices for sophisticated digital asset products and services,” said BAI Capital Partner William Zhao, in a press release.

Babel Finance, which limits its activities to BTC, ETH and stablecoins, had an outstanding loan balance of more than $3 billion and an average monthly trading volume of $800 million in derivatives at the end of 2021. Until at the time, he claimed to have structured and traded over $20 billion in options products.

Babel has expanded its squad to more than 170 people from just 50 since its Serie A ended last May.

In the previous round, the startup raised $40 million from investors including Sequoia Capital China and Dragonfly Capital. Its Series A round also marked the first investment in the Asian crypto-finance sector by US investment firm Tiger Global Management, European investor BAI Capital and Zoo Capital, the firm’s venture capital arm. private equity (PE) firm Boyu Capital focused on China.

Earlier funding has helped Babel open a new office in Singapore and expedite its relevant license applications in Hong Kong, Luxembourg, the UK, as well as other countries and regions around the world.

“The crypto financial market is full of hidden opportunities and risks. From a Short-Term Earnings, Retail Market, and Altcoin Perspective [which refer to cryptocurrencies other than Bitcoin] may have higher profit margins, but we pay more attention to the long-term development of the industry and aim to be at the forefront of institutional financial services and innovation,” said Del Wang, co-founder and CEO of Babel Finance.

“It not only helps overcome many early-stage uncertainties in the industry, including regulatory and market uncertainties, but also protects our customers to the greatest extent,” Wang said.

Another Singapore-based digital asset platform, Amber Group, whose investors include Temasek, Sequoia Capital China and Tiger Global Management, was valued at $3 billion after completing a Series B+ round. of $200 million in February.

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