One of Asia’s largest crypto lenders Babel Finance agrees to repay part of its debts

A crypto-financial services provider Babel Finance reached “preliminary agreements” with major counterparties “on the repayment terms of some debts”. The Block reports.

According to representatives of the company, they urgently assessed the liquidity of their business operations.

“The preliminary agreements on the repayment timelines for some debts with major counterparties and clients have eased near-term liquidity pressures,” Babel Finance said.

The team also denied reports of insolvency that purportedly reached the lender’s partners.

However, the improvement in the situation does not mean withdrawals will resume. The company will continue to engage with shareholders and potential investors to support liquidity.

Founded in 2018 in Hong Kong, Babel Finance is one of the largest crypto lenders and asset managers in the Asia-Pacific region.

In May 2022 the provider closed a Series B funding round at $80 million with a valuation of $2 billion. Leading investors were Jeneration Capital and 10T Holdings with participation from Circle Ventures, a number of Southeast Asian family offices, and existing shareholders Dragonfly Capital and BAI Capital.

Last week Babel Finance said that it had paused payments and withdrawals from its own products due to liquidity shortages.

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