By Yifan Wang
Babel Finance, a Hong Kong-based cryptocurrency financial services provider founded by Chinese entrepreneurs, has raised US$40 million in its latest financing, as it pushes to join other global cryptocurrency companies in going increasingly mainstream.
The new funding round was led by investors including Sequoia Capital China, Zoo Capital, and Tiger Global Management, the company said in a statement Monday.
Being able to secure investors from the "traditional finance" sector marks "a critical step for us," said Babel Chief Executive Flex Yang. The financial industry's recognition of the company would aid its strategy to capture demand for crypto products and services from mainstream investors, he said.
Before the latest fundraising, Babel Finance had received funding from investors such as Singapore-based blockchain investment fund NGC Ventures.
Babel Finance, whose crypto-lending business now has an outstanding loan balance of US$2 billion and a monthly crypto-derivative trading volume of US$8 billion, plans to focus the new funds on compliance investment. This would involve applying for relevant licenses in North America, Europe and Asia, a move that could further support its ambitions in the mainstream market.
"We are taking compliance requirements very seriously in every jurisdiction we operate in and are actively working with regulators to define the best crypto compliance practices," a Babel spokesman told the Wall Street Journal.
The new funding will also be used for technology infrastructure and talent acquisition, including potential merger and acquisition deals, the company said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
May 10, 2021 09:00 ET (13:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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