The crypto currency platform will use the funds to advance its decentralized finance (DeFi) product as a service that it is working on.
Crypto activity in the Asian region has been hampered by a crackdown on digital asset platforms and crypto-currency related entities in Korea and a crackdown on mining companies in China. However, this has not stopped companies from investing in platforms operating in the region. Singapore-based digital asset custody and management platform Cobo revealed yesterday that it had completed a $40 million Series B funding round at an undisclosed valuation.
The fundraising was led by A&T Capital, IMO Ventures and DST Global. It follows a $13 million Series A funding round in October 2018 that DHVC and Wu Capital led. The startup revealed that it would direct the capital from this latest funding towards the development of its decentralized finance (DeFi) offering, which the firm said will be a one-stop shop for institutional investors.
According to the crypto asset management firm, the product will give institutions access to DeFi protocols, allowing them to earn returns in a compliant but simple manner. Cobo explained its offering, adding that institutional clients would not have to deal with the complexities of exposure to DeFi projects.
Cobo, which started out as a blockchain infrastructure provider, has been working to completely relocate its headquarters from the Chinese capital to Singapore. The company added that a fraction of the funding will go towards obtaining licenses and approvals for the product’s market entry. Essentially, the funding will help the company comply with existing guidelines, including anti-money laundering.
“With interest in the crypto revolution skyrocketing across Asia, it is high time to develop blockchain infrastructure to meet the growing demand, especially as we see growing enthusiasm among institutions,” observed Mao Shixing, co-founder of Cobo. “In the past, we’ve seen crypto applications evolve from Bitcoin DeFi and now to NFTs. In due course, I even predict that metaverses will be the next to be developed on the blockchain. So going forward, we have the basic infrastructure in place that will allow us to serve 1,000 institutional investors.”
Cobo’s offering is the first DeFi product as a service (DaaS). The company also offers various services, including custody, staking and trading of crypto-currencies. Currently, it serves over 300 institutional clients in the Asia-Pacific market. Its clients include crypto-currency mining pool F2Pool, the derivate digital asset trading platform Deribit and the digital asset trading platform BitMart. Since its inception in 2017, it has transacted a total of $20 billion and currently has nearly $1 billion in assets under custody.