Matrixport builds out UK operations with new partnership

Investment firm Matrixport has secured a new partnership, which will enable it to double down on its international expansion.

The firm's UK subsidiary, Matrixport Advisors Limited, has become an appointed representative of Varramore Partners, a regulated hosting partner and compliance advisor which is regulated by the Financial Conduct Authority (FCA) in the UK.

This partnership means that Matrixport can offer a range of investment-related activities in the UK to institutional investors.

"We will help Matrixport to introduce and promote digital asset investment products and services to UK-based institutional investors in line with the FCA’s regulatory requirements, principles and expectations," said Gerard O’Brien, managing director of Varramore in the release.

Last week, the UK government proposed a sweeping new regulatory framework for the crypto industry. The new regulatory framework, as well as the Financial Services and Markets bill that is currently moving through UK parliament, will expand the FCA's remit in regulating crypto.

"This achievement is a testament to our commitment towards best practices in regulatory compliance in the jurisdictions in which we operate," said Toby Norfolk-Thompson, Matrixport’s chief investment officer for the US and UK, in the release. "The UK, being a European hub of financial innovation and stability, presents an opportunity for us to tap into its thriving digital asset market to introduce an exciting and unique digital-asset product suite for institutional clients.”

Norfolk-Thompson is also on the management team for The Digital Economy Initiative, an independent think tank dedicated to promoting effective public policy for cryptocurrencies and digital economy applications.

A crypto unicorn

In November, following the collapse of crypto exchange FTX, Matrixport was seeking to raise $100 million at a $1.5 billion valuation. The startup said that it already had $50 million in commitments and was seeking investors for the rest of the round.

Founded in 2019 by crypto billionaire Jihan Wu, Matrixport offers various services, from lending to asset management and trading services. Investors in previous rounds  have included DST Capital, Paradigm, Dragonfly and Tiger Global Management.

Bloomberg recently reported that Matrixport was reshuffling its management team for its asset management division, while cutting 10% of staff in its digital lending business.

“We’ve sharpened our strategic focus towards accredited investors given the significant shift in the regulatory climate following the industry wide capitulations,” Cynthia Wu, chief operating officer for Matrixport Technologies, told Bloomberg.