Lending is a difficult business. Many companies have tried and failed, to make it work in the past and we’re seeing more of them fail now. But despite the current downturn in the markets, some lending companies are still looking to find ways to expand operations. One such company is Matrixport, which recently announced that it’s looking for $100 million worth of funding after expanding its team from 20 employees to 40 over the last year.
Matrixport, the lending arm of Bitmain, has requested $100 million worth of funding from investors in order to expand its business operations.
The funding round will also allow Matrixport to establish a new subsidiary at its headquarters in Singapore. The company said that it plans to set up an additional office in Hong Kong after it completes its initial funding round.
Matrixport Looking For More Funding
Matrixport is one of several lending companies serving an emerging demand for cryptocurrencies from investors looking for alternatives outside of traditional exchanges or trading platforms. It is also one of many companies expanding into new markets but faces competition from other lenders such as BlockFi which recently raised $17 million through its own Series B funding round led by Galaxy Digital Ventures LLC.
Matrixport was founded in March, and currently has 20 employees, who operate mainly from Singapore and China. Ge Yuesheng also said that he believes his company will be able to enter the United States market by late 2020 after gaining a necessary regulatory approval.
Ge Yuesheng said that Matrixport is an open platform that allows users to lend their digital assets or tokenize them as collateral for a loan on the platform. The borrower gets USD loans with up to 70% of the value of their digital assets as collateral, while borrowers receive their money in bitcoin or Ethereum if they do not want fiat currencies.
The company currently offers loans worth $1 million per day on its platform and processes over 10 million requests every month through its lending bot named Alice and other services offered by Matrixport such as fractional ownership solutions (FOCUS) tokens and stablecoins backed by cryptoassets such as BTC-USD futures contracts (Tempa).