Swiss digital currency firm Crypto Finance AG has raised CHF 14 million ($14.45 million) in Series B funding. In a press release announcing the completion of the funding round, the company revealed that it will channel the funds to global expansion. The funding was led by Asian private equity firm Lingfeng Capital and Swiss hedge fund veteran Rainer-March Frey.
Based in Zug, Crypto Finance AG is a holding company with three operational subsidiaries. The first is Crypto Fund AG, the first regulated digital currency asset manager in Switzerland. The fund received a license from the Swiss Financial Market Supervisory Authority in 2018, allowing it to offer domestic funds tied to digital currencies for the first time in Switzerland.
Its other subsidiaries are Crypto Broker AG and Crypto Storage AG which deal in digital currency trading and custodial storage respectively. The latter also offers tokenization solutions for enterprises.
The new funding is testament to the company’s track record and strategy for the future, the press release stated, noting the increased difficulty in raising funds due to the current COVID-19 pandemic. It was led by Lingfend Capital, with the firm’s partner Dr. Ming Shu expected to join the company’s board of directors. Dr. Shu revealed that she was excited at the new opportunity and that the partnership between the two firms would benefit them both.
She added, “This opportunity brings us exposure to the promising crypto asset fintechs working within the regulatory framework and a partner with traditional finance sector experience. We look forward to building a bridge between Europe and Asia with Crypto Finance, and the convergence of traditional and digital asset classes.”
Crypto Finance AG, which has now raised $37.1 million in total, will channel the funding into expansion. Currently, just over 50% of its business is linked to international clients, an opportunity it intends on exploiting fully.
The other investors were just as excited, with Dr. Frank Tong of QBN Capital stating, “The robust financial regulatory field and vibrant crypto community attracted QBN to invest in Switzerland. Crypto Finance AG is one of the best in its ranks. Digital asset trading is here to stay, and we can learn from Swiss experience.”
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