Babel Finance Secures $40 Million In Venture Capital Financing

Babel Finance, the Hong Kong-based crypto financial services provider, has secured $40 million in venture capital financing to expand its offerings to more institutional clients.

It has been reported that the Series A investment round was led by Zoo Capital, Sequoia Capital China, Dragonfly Capital, BAI Capital and Bertelsmann, and Tiger Global Management. Venture capital and private equity funds from North America, Asia, and Europe participated in the raise.

Flex Yang, the CEO of Babel Finance, said:

“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.”

However, Zoo Capital said Babel Finance is its first crypto-focused investment.

Founded in 2018, Babel Finance offers cryptocurrency lending, asset management, and financing services to institutional investors. The company claims to have over 500 institutional clients and over $2 billion in outstanding balances for its crypto lending business. Its derivatives portfolio generates $8 billion in monthly trading volumes. Institutional investors have become an integral part of the rapidly growing cryptocurrency market.

Institutional adoption of cryptocurrency is on the rise. Babel Finance, a Hong Kong-based crypto financial services company, just received backing from major industry players. — Cointelegraph (@Cointelegraph) May 10, 2021

Collectively, they hold over $64 billion in crypto assets under management, with large concentrations in Bitcoin (BTC), and Ether (ETH) products.

Thus, within the institutional ranks, financial advisers are playing a bigger role in moving the needle on adoption.

Source: Cointelegraph | Image: Entrepreneur

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