Ex-Bitmain CEO launches new startup Matrixport

Bitmain co-founder Wu Jihan’s new project is now live, Bloomberg writes. The new cryptocurrency financial services startup called Matrixport spun off Bitmain in February and has brought on a number of former Bitmain employees. News of the project was first broken by The Block last month. [related id="1"] 

The company’s Chief Executive Officer Ge Yuesheng has confirmed the company will offer over-the-counter trading, lending and custody for cryptocurrencies. 

With Wu as a major shareholder, the company’s other shareholders include a number of venture capital firms as well as Bitmain itself. However, precise information regarding the company’s funding is not yet available.

“We are closely tied to Bitmain by our origin,” said Ge. “But because we operate in different businesses, we are partners rather than competitors.”

It is possible Bitmain will become Matrixport’s major client. Should the partnership take place, the company may turn into “the world’s biggest OTC desk” overnight, sources said. This should give Matrixport a competitive advantage in the region over other similar companies as "[w]ith liquidity like that, [low] prices follow."

Matrixport has chosen Singapore as its headquarters to get around China's ban on cryptocurrencies.