The crypto-financial services provider Babel Finance raised $40 million in a Series A round.
Learn more about what are the next steps for Babel!https://t.co/SglGnGSn7Y
— Babel Finance (@BabelFinance) May 10, 2021
The round included Zoo Capital, Sequoia Capital China, Dragonfly Capital, Tiger Global Management and others.
According to the company’s CEO, Flex Yan, the investments are strategic. In a comment to Reuters he noted that the fresh capital did not lead to an increase in free cash flow, but allowed partnerships with players in the traditional financial sector.
The raised funds will be used by Babel Finance to obtain relevant licenses in jurisdictions worldwide, including North America and Europe. This will enable the company to offer cryptocurrency products to institutional investors.
“Babel Finance aims to become a global provider of services, on a scale comparable to our US counterpart— DCG [Digital Currency Group],” stated co-founder Del Wang.
As of February 2021, the company served more than 500 institutional clients. Its portfolio of outstanding crypto loans was valued at $2 billion, and its monthly crypto-derivatives trading volume stood at $8 billion.
Back in September 2020, anonymous insiders posted audio recordings online in which Del Wang allegedly admits that Babel Finance mismanages client funds.