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One River Asset Management Closes $41M Funding Round Led by Goldman Sachs

One River Asset Management, one of the leading institutional asset managers in the cryptocurrency ecosystem, has completed a $41 million Series A funding round led by Coinbase Ventures and Goldman Sachs Group Inc, amongst others.

As noted by the firm, the funds will help deepen its ties with financial and digital industry leaders and provide capital to accelerate One River Digital’s ongoing development further.

The One River Asset Management’s funding and its high-profile participants, including the two Wall Street giants named above, showcases the growing influx of mainstream players into the digital currency industry. With many ways to embrace crypto-related investments, active backing players in the space through venture capital funding has proven to be a very safe bet for many, including Goldman Sachs.

“We are thrilled to have the support of these five new strategic investors. Each institution is a leader of their specific category of finance, bringing with them unique experiences, connectivity, and capabilities,” said Sebastian Pedro Bea, President of One River Digital. “We are already collaborating to develop and distribute an expanding range of institutional digital asset strategies that best meet the needs of our global clients.”

One River Asset Management made headlines back in March when it employed former US Securities and Exchange Commission (SEC) boss Jay Clayton as one of its advisors. The aim was to get a headstart in navigating the regulatory landscape as the company seeks to roll out a number of products to increase its market share.

A number of digital currency firms and projects have raised funds successfully this year. Amongst the most notable ones include the $100 million Series C round announced by Singapore-based Digital financial service platform Matrixport and Avalanche’s recent $230 million raised from a group of investors led by Polychain and Three Arrows Capital, amongst others.

Facebook Sets up $50M Investment Fund for the Development of Metaverse

Online social media and social networking service platform Facebook today announced a two-year grant of $50 million to strengthen the interpersonal connection between reality and virtual reality and consumer hardware and to promote the development of Metaverse products.

Metaverse is a combination of the prefix “meta”, meaning beyond, and “universe”, which refers to shared virtual worlds where land, buildings, avatars, and even names can be bought and sold, often using cryptocurrency.

Metaverse is also called “Metaverse”. In this virtual space, users can create, explore, play, work, shop, and do other daily activities with other users who exist in another type of physical space.

Facebook represents the existence of Meta Universe that “It’s not necessarily about spending more time online — it’s about making the time you do spend online more meaningful.”

In the latest official announcement, the company said:

“The metaverse won’t be built overnight by a single company. We’ll collaborate with policymakers, experts and industry partners to bring this to life.”

Facebook stated that in addition to cooperating with experts from the government, industry, and academia to think about interoperability, collaborative work, and other issues and opportunities in the metaverse, it will also cooperate in predicting and controlling risks in the following areas, namely: Economic opportunity; Privacy; Safety and integrity; Equity and inclusion.

Funds will be paid through Facebook’s two-year US$50 million XR program and research funding.

To ensure a more responsible and inclusive way to deploy its Metaverse, Facebook teams also cooperate with some non-profit organizations, including Women In Immersive Tech, supporting Africa No Filter, Electric South, and Imisi3D.

Initial partners include cooperation with well-known universities, such as Seoul National University and the University of Hong Kong-security design research; National University of Singapore-artificial intelligence field privacy law research; Howard University-IT diversity.

FTX Completes $420M Series B-1 Funding Round at $25B Valuation

FTX Derivatives Exchange has completed a $420.69 million Series B-1 funding with participation from top investors.

As announced by the firm, these investors include the Ontario Teachers’ Pension Plan Board, via its Teachers’ Innovation Platform, Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, Tiger Global, Ribbit Capital, Lightspeed Venture Partners, and funds and accounts managed by BlackRock.

The funding round came just after the company raised $1 billion back in July 2021. Following this latest funding round, the Bahamas-based outfit has increased its valuation to $25 billion, further extending its position as a unicorn in the digital currency ecosystem. The company said it is going to deploy the new funds in expanding its product offerings and pushing forth into new markets globally. Ramnik Arora, Head of Product at FTX, said:

“The additional capital and group of investors will let us provide the experience our users deserve and address other adjacent market opportunities including equities, prediction markets, NFTs, and videogame partnerships. We expect to make strategic investments designed to grow the business and expand our regulatory coverage,”

While FTX has also had to adjust its operations in line with regulatory pressures globally, the company has inked several milestones that have positioned it on its next growth phase. Since its last funding round, the Sam Bankman-Fried led organization has established its headquarters in the Bahamas while also securing licenses under new regulatory frameworks in both the Bahamas and Gibraltar.

The firm is also strategic in its product offerings as it has floated an NFT marketplace, a growing trend amongst major digital currency exchanges today. Known for its Merger & Acquisition acquisitions, the company acquired Blockfolio through a record-breaking $150 million deal at the time, and its US affiliate, FTX.US, also acquired CFTC regulated clearinghouse, LedgerX.

While the company did not declare any plans to make any acquisition with the latest capital injection, doing so will not be out of place in its push to expand its reach in the industry.

Digital Currency Group Raises $700M at $10B Valuation

The Digital Currency Group (DCG) has announced its latest secondary share sale, in which it pulled about $700 million in funding.

The funding round was sparked by a wave of existing investors who sold their shares to the new investors. However, DCG Founder and CEO Barry Silbert confirmed he did not sell any of his shares in the latest round.

Prominent investors include Softbank Group Corp’s Vision 2 Fund, Ribbit Capital, GIC Capital, and Latin American Funds. The secondary share sale was also embraced by Alphabet Inc’s CapitalG, marking a grand first-time investment into the company with a plethora of investment portfolios.

Digital Currency Group operates the Grayscale Investments who administers the Grayscale Bitcoin Trust (GBTC), a $50 billion that the company said it wants to turn into a full-fledged Exchange Traded Fund (ETF) product, subject to regulatory approval. DCG group is known for its investment in more than 200 blockchain and crypto-related firms, putting it at the forefront of fueling innovation in the digital currency ecosystem.

“We’re the best proxy for investing in this industry,” Silbert told CNBC in an interview. “We were looking for the type of backers that could be, and hopefully will be with, with us on this journey for the next couple of decades.”

The latest funding round places the Digital Currency Group at a $10 billion valuation. The company now ranks alongside blockchain payments firm Ripple Labs Inc, Kraken Exchange, and Circle as one of the most profitable private crypto companies in the United States and the world at large.

Investments in cryptocurrency-focused outfits are no longer an uncommon event today. Huge cash from mainstream institutional investors is flowing into the industry as hedge funds and venture capitals seek to gain exposure to the growing crypto ecosystem in the most legal and risk-free manner. Outfits like DCG and FTX remain trusted channels to meet most investors’ goals for venturing into the crypto industry.

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Argo Blockchain Seeks $57.5M Debt Funding to Build Texas Mining facility

London-based digital currency mining platform, Argo Blockchain has filed an application with the United States Securities and Exchange Commission (SEC) to offer $57.5 million worth of 8.75% senior unsecured notes to interested investors.

Per the filing, the senior unsecured notes are billed to mature on November 30, 2026, and the proceeds are billed to be pushed into completing the company’s Bitcoin mining facility in West Texas.

Argo Blockchain has been making an emphatic move into the North American market in the past few years, citing the cheap and renewable energy sources available in various areas in the region. The acquisition and construction of the West Texas facility have pushed the firm to secure loans from Galaxy Digital on two different occasions – in June and September – using its Bitcoin holdings as collateral.

Going by the company’s filing, it said it holds as much as 2,128 BTC, most of which were mined from its facilities. However, based on the firm’s perception of Bitcoin as a good store of value, it would rather resort to securing a loan rather than liquidating its coin holdings. The completion of the West Texas facility will supply up to 800MW of power for Argo Blockchain’s future operations, and the firm takes pride in that the facility will run on renewable energy, alleviating the concerns of climate impact its operations can spur.

“We believe that as cryptocurrency continues to develop as an emerging store of value and medium of exchange, it is increasingly important that this asset class evolves in an environmentally and socially responsible manner. We are committed to being the industry leader in the development of environmentally responsible approaches to cryptocurrency mining,” the company said in its filing.

The broad moves by Argo Blockchain to bolster its mining capabilities come at the heels of a shift in hashrate dominance to the United States as China sent miners packing earlier in the year. Argo Blockchain seeks to position for a future in which mining will become sustainable and profitable across the board. The proposed $57.5 million funding will also be used to bankroll the acquisition of new mining hardware for the new facility which is billed to be operational in 2022.

Venture Capital Firms Almost Quadruple Previous High by Pumping $30B into the Crypto Industry in 2021

Venture capital firms kept a keen eye on the crypto industry to the extent of pouring $30 billion in this sector in 2021.

Market analyst Holger Zschaepitz confirmed:

“Crypto attracted $30bn of venture-capital funding in 2021, more than in all other years combined. VC money almost quadruples previous high of $8bn in 2018, the year following Bitcoin’s 1,300% breakthrough gain.”

Zschaepitz added that the current venture capital funding is nearly four times its previous all-time high of $8 billion recorded in 2018.

Mason Nystrom, a research analyst at Messari, previously noted that as cryptocurrencies continued gaining steam, crypto company fundraising hit $8.2 billion in the third quarter of this year.

Meanwhile, Jackson city in Tennessee has eyes on becoming the first town in the United States to add cryptocurrencies as a payroll conversion option for its employees.

The city’s mayor Scott Conger acknowledged that plans were in motion to permit third-party platforms to offer cryptocurrency converter services through the recently opened request for proposal (RFP).

Conger noted: “the RFP is open, and the 22nd is when the respondents have to respond to the RFP. So once the 22nd hits, we’ll open the bids, have the committee, and then they’ll review it. They’ll probably make a recommendation to the council in February.”

On the other hand, cryptocurrency firms are seeing Singapore as inhospitable based on legal and operational difficulties, according to a recent Nikkei Asia report.

According to figures released by Singaporean regulators, more than 100 of around 170 cryptocurrency businesses that applied for licensing have been turned down or withdrawn their applications. While many more, operating under exemptions, face an uncertain future.

Fintech Investments Amount in Singapore Reached over $3.9 Billion in 2021

The financial technology (fintech) sector in Singapore made significant strides in 2021 by hitting $3.94 billion, with crypto and blockchain funding contributing nearly half at $1.48 billion, according to KPMG’s Pulse of FinTech report.

Per the announcement:

“Investments in Singapore’s fintech sector grew 47% year-on-year to hit $3.94 billion in 2021. Blockchain and crypto raked in almost half of the funds, raising $1.48 billion across 82 deals.”

Therefore, the fintech industry reached a five-year high with 191 deals, representing a 37% increase from 139 deals in 2020.

Some of the factors that fueled this growth entail the rollout of local measures to revamp the capital market. They included creating a special purpose acquisition company (SPAC) listing framework meant to make Singapore an ideal choice for unicorns and fast-growing companies.

As a result, crypto and blockchain funding took the lion’s share in the funded fintech category because it saw exponential growth from $109.75 million pooled in 2020 to $1.48 billion last year.

The report added:

“Blockchain and crypto drew a record $30.2 billion in investments last year, up from $5.5 billion in 2020 and more than three times the previous record of $8.2 billion in 2018.”

Anton Ruddenklau, KPMG International’s Singapore-based global fintech leader, acknowledged that 2021 was a good year for the fintech industry because worldwide funding soared to $210 billion.

He added:

“We’re seeing an incredible amount of interest in all manner of fintech companies, with record funding in areas like blockchain and crypto, cybersecurity, and wealth tech. While payments remain a significant driver of fintech activity, the sector is broadening every day.”

As one of the big four auditing firms, KPMG is not being left out of the crypto bandwagon because it recently announced that it added Bitcoin (BTC) and Ethereum (ETH) to its corporate treasury.

Space Runners Raises $10M Funding to Democratize Blockchain-Backed Fashion Metaverse

Space Runners, a major metaverse fashion brand focused on NFTs, announced on Monday that it raised $10 million in a funding round co-led by Polychain and Pantera Capital.

In this round, other firms, including Accel and Jump Crypto as well as other investors such as Yat Siu (Co-founder and Chairman of Animoca Brands), and Justin Kan (Co-founder of Twitch and Fractal) also participated in the funding.

Space Runners said that it plans to use the fresh funding to expand its two business lines (Fashion items and Fashion Metaverse). Space Runners stated that it will use the funds raised to expand its interoperable fashion items for various metaverses and games. The firm also mentioned that it intends to use the funding to gamify fashion for the first time by developing the first ‘Wear2Earn’ economy, where users are rewarded and incentivized for being fashionable in the Metaverse.

Won Soh, co-founder of Space Runners, further talked about how the firm plans to use the fresh funding: “Our goal is to build the first end-to-end Fashion ecosystem on blockchain with the newly secured financing.”

Meanwhile, Paul Veradittakit, a partner at Pantera Capital, also commented about the development and stated: “Pantera is proud to support Space Runner’s vision to pave a new way to interact with fashion on the blockchain. Digital identity and self-expression will be a key components in the metaverse…Fashion will be just as, if not more, important in the Metaverse than the real world.”

Unlocking NFT Opportunities for Fashion and Beauty Users

Based in Texas, Space Runners develops open-sourced fashion items as NFTs with artists and brands, which can be plugged into metaverses, games, and social media. For instance, the firm creates wearable footwear NFTs for virtual environments like metaverses.

In December last year, the firm collaborated with Kyle Kuzma, a prominent NBA star, a partnership that saw Space Runners using Kyle Kuzma’s name on their branded digital sneakers.

The company’s fashion and gaming NFT project enables esteemed designers, celebrities, and enterprises to offer glamorous collections as NFTs. Such designs can be exchanged, bought, upgraded, outfitted with equipment, and used as avatars in warfare and racing games.

Space Runners NFTs (non-fungible tokens) have many exciting features that are beneficial to their users. Collectors can exchange their game assets online in the low-fee, reputable marketplace. DeFi technologies such as farming, renting, collateral, staking, and DAO are also available on Space Runners. The digital platform is available for use in digital contexts like metaverses, games, virtual events, and social media platforms.

Nordic Neobank Lunar Raises $77M Funding Round, Launching Crypto Trading Platform

Lunar, a Nordic neobank headquartered in Aarhus, Denmark, announced on Thursday that it raised $77 million in a funding round led by Heartland and also launched a cryptocurrency trading platform.

Lunar said that it plans to use the fresh funding to maintain the momentum of its business, launch a separate blockchain arm, develop new crypto trading tools, and look at M&A in the Nordics.

Ken Villum Klausen, the Founder and CEO of Lunar, talked about the development and said that rolling out new crypto tools would enable the firm to stand out in a market where incumbent participants are already digitized. With the launch of the crypto trading platform, Lunar aims to enable its users to trade Bitcoin, Ether, Dogecoin, Cardano, and Polkadot at the platform.

Lunar seeks to make cryptocurrency trading “hassle-free” for Nordic customers. While currently, users can have an account with a crypto exchange separate from their bank account, Lunar plans to provide banking and cryptocurrency under one roof.

“It’s a hassle for Nordic consumers to use multiple platforms for their needs. We’re excited to bring crypto to our universe of banking, payments and investments.” Klausen further elaborated.

Tackling Financial Exclusion

Founded in 2015, Lunar remains serving as a digital challenger bank that offers a mobile-based banking app that helps consumers manage their personal finances.

In July last year, Lunar raised €210 million in a Series D funding round to revamp its business and products. The company made such a development putting in mind that both private and business customers expect a more convenient, engaging and emphatic alternative to traditional banks, lenders and payment service providers.

Just like Revolut and Monzo, Lunar wants to become a one-stop-shop for finance. It already provides banking services, loans, savings, insurance, loan products like BNPL, and stock and ETF investments. The abovementioned business developments underpin Lunar’s long-term vision of developing a digital-first financial ecosystem for both private consumers and businesses.

Ontario Teachers’ Pension Plan Leads £210M Round in UK-Based Consumer Finance Platform Lendable

Lendable.co.uk, a major AI-powered consumer finance platform based in London, announced on Thursday it raised £210 million in a funding round led by the Ontario Teachers’ Pension Plan Board through its Teachers’ Innovation Platform (TIP).

That is not the first time Canada’s pension organization invested in startups. In October last year, the Ontario Teachers’ Pension Plan and its Teachers’ Innovation Platform led a funding round in which the FTX crypto exchange obtained $420 million from various investors.

Teacher’s Innovation Platform (TIP) is a new investment department within Ontario Teachers’ Pension Plan (a pension fund company) and focuses on late-stage venture and growth equity in cutting-edge technology firms.

In the press release issued by Lendable, the company said that it plans to use the fresh funding to develop new products and to enable its expansion in new markets.

Martin Kissinger, founder and CEO of Lendable.co.uk, talked about the financing and said: “We are excited to partner with TIP as we accelerate our expansion across products and markets. Our DNA from day one has been to bring transparency and fairness to consumer finance, and we are proud of the fantastic feedback we consistently receive from our customers. TIP is a global growth investor with a long-term view who can support our ambition to make this giant market work better.”

Meanwhile, Olivia Steedman, Senior Managing Director at TIP, also commented about the development and stated: “Lendable’s seamless, quick and easy to use products, powered by advanced AI, are shaping the future of consumer finance. We’re delighted to work with Martin and his visionary team to deliver on Lendable’s growth ambitions.”

Providing Loans to Businesses

Founded in 2014 by Martin Kissinger and Victoria van Lennep, Lendable.co.uk is on a mission to use technology to make consumer finance work better for thousands of millions of customers. It applies automation and AI to enhance underwriting and offer customers better rates, transparency and service. The platform provides debt asset classes to fintech companies such as banks family offices, among others across the world, to offer credit facilities and financial services to their customers.

Lendable has proven popular with customers because it comes straight from an investor when clients borrow money from the lending platform. Unlike banks that hand out loans from a large amount of money, they look after on behalf of savers. Its platform is super-fast and makes lending as hassle-free as possible. The platform uses institutional capital to fund its services, according to the company. Within a matter of a few clicks, a customer gets her quote. Unlike banks that require paperwork and run expensive branch networks.

Last March, Lendable achieved unicorn status after it obtained backing from Goldman Sachs, a multinational investment bank. With plans to expand its business into the US marketplace, the lending platform is reported to be launching a new credit card product.

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