The Hong Kong financial services provider Amber Group is considering a direct listing in the United States. In an interview with South China Morning Post, co-founder and chief executive Michael Wu said the company could enter the public markets within the next two years.
“A direct listing is definitely being considered. Possibly next year or in a year’s time. We are working on it. The United States is the most likely venue, but we are considering other options,” Wu said.
Amber Group was founded in 2017 by veterans of Morgan Stanley. The company manages assets worth over $1.5 billion, and employs more than 400 people.
In June, the firm closed a Series B funding round led by China Renaissance. Amber Group raised $100 million, and its valuation reached $1 billion.
The company serves institutional and retail investors. It offers crypto-saving accounts, as well as services related to algorithmic and high-frequency trading, OTC-deals, derivatives, and lending.
According to Wu, the listing is not about enabling certain individuals to cash out. The process will raise the company’s brand awareness, help attract talented professionals, and reduce financing costs.
Some aspects of Amber Group’s operations, such as the mentioned crypto-saving accounts, may raise concerns among US regulators. Earlier, the launch of a similar product refused by the bitcoin exchange Coinbase — the reason being possible legal action by the U.S. Securities and Exchange Commission.
“I think in the United States, when it comes to cryptocurrencies, a more conservative approach is applied than elsewhere in the world. The bulk of our business is in other countries. We will consider the cases of each jurisdiction separately,” Wu said.
He added that Amber Group’s credit products have already received approval in some countries.
Earlier in September, regulators in Texas, New Jersey and Alabama accused the Celsius Network crypto-lending service of trading unregistered securities.
BlockFi, another crypto-lending platform, faced similar charges — regulators in Texas, Vermont, New Jersey and Alabama are examining the BlockFi Interest Account (BIA) offering for legality.
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