Crypto Lender and Asset Manager Babel Finance Reaches $2B Valuation

Hong Kong-based Babel Finance has raised $80 million funding round bringing its value to $2 billion

Bishal Kumar Chanda2 min read
Crypto Lender and Asset Manager Babel Finance Reaches $2B Valuation

Despite the recent crypto market crash, many institutional investors seem to be unfazed. It is evident from Babel Finance’s growth how banks, investment funds and traditional investors are adopting the new digital asset class.

Babel Finance Defies Crypto Downturn With $80m Fundraising

Hong Kong-based Babel Finance has raised $80 million in its series B funding round, as it promised to focus on long-term development instead of short-term profits. Thus, bringing the crypto lender and asset manager’s value to $2 billion.

Also, this round was mainly backed by Jeneration Capital, 10T Holdings and Babel’s existing shareholders, Dragonfly Capital and BAI Capital. Also, it had other investors, including Circle Ventures and several family offices in the Asia-Pacific region.

In an earlier year, Babel Finance had raised $40 million in its previous funding round. All in all, the crypto firm has raised about $120 million of equity financing to date.

Throughout the years, from a crypto lending business targeting crypto miners, Babel has transformed into a crypto asset manager for financial institutions. Currently, it is serving a group of over 500 organizations and high net-worth individuals. Its services include crypto lending and borrowing along with portfolio management.

According to Babel co-founder and CEO Del Wang, this group’s demand “is strong as they seek more sophisticated financial instruments to manage their investments in cryptocurrencies.”

“The crypto financial market is full of opportunities and hidden risks,” he added. Furthermore, he also mentioned that the firm has applied for business licenses in Hong Kong, Luxembourg and the UK.

Stable in The Unstable Crypto Market

Meanwhile, the recent LUNA and UST crash did not affect Babel Finance’s business, as the firm had no exposure to the coins. In fact, Babel has limited its business to bitcoin, ether and select stablecoins.

Also, Babel Finance claimed to have an outstanding loan balance of over $3 billion. At the end of 2021, it also claimed to have an average monthly trading volume of $800 million in derivatives. In fact, it has structured and traded over $20 billion in options products.

Moreover, Babel is now making its own venture capital bets on emerging startups like other successful crypto firms. Since 2020, Babel Finance has invested in over ten companies focussing on crypto finance, brokerage and trading, and decentralized finance. However, the firm didn’t disclose the names of the companies it invested in.

Earlier this month, Babel Finance appointed a new Head of Treasury, Yang Song. The Hong Kong-based crypto firm is planning to expand its crypto lending business.

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