Matrixport closes $100 million fundraise at ~$1 billion pre-money valuation

Matrixport—the crypto financial services platform that bills itself as a neo-bank—announced late Sunday evening the close of a Series C fundraise that clinches the firm $100 million at a more than $1 billion pre-money valuation. 

Launched in 2019 as a spin-off of Bitmain, Matrixport is a large crypto player in Asia with around $10 billion in assets under management (AuM). Its platform offers a wide range of services, including trading, lending, and fixed-income-like products. 

"We are not an exchange, we are not a wallet," John Yuesheng Ge, CEO of Matrixport said in an interview with The Block. "We are a crypto bank."

As for the round, it was backed by partners at DST Global, C Ventures, and CE Innovation Capital, as per a media release. Other investors include Tiger Global, Polychain, and Dragonfly.

Matrixport's fundraise announcement follows similar raises by a long list of crypto firms, including Fireblocks, Paxos, and crypto exchange FTX. Matrixport has raised $129 million to date, according to a spokesperson.

Matrixport mobile application

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Matrixport's raise is significant given the firm's home base in Asia. China has recently cracked down on bitcoin mining, triggering the exodus of several firms operating in the region. Matrixport—which previously targeted Chinese clients—is adjusting to the recent regulatory environment, pivoting away from the country and targeting clients in other Asian jurisdictions. The firm is headquartered in Singapore.

Despite that move, Ge said it has been able to maintain its current AuM. 

"We don't want to break the rules so right now we moved our focus to other countries in Asia," Ge said. The firm is now targeting Europe and North America, pending the required regulatory approvals. 

Ge said that interest in the company has been buoyed by its yield offerings, which provide a return that trumps that of the average bank. The firm offers a way to invest in funds that return yields above 4%. Funds parked into those funds are used for "crypto-backed lending, leverage trading (bull or bear), or other lending business of Matrixport platform," according to a description on its mobile app. 

Matrixport was bootstrapped by crypto mining legend Wu Jihan, former chairman and a co-founder of Bitmain. In 2020, Bloomberg reported it was seeking to raise $40 million at a $300 million valuation. 

This post has been updated for clarity. 

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO