Temasek Holdings’ venture capital unit, Vertex Ventures, has invested in cryptocurrency exchange Binance, which was established last year. The objective is to help create an exchange for fiat-to-digital currency in return. The development suggested that despite sluggishness in the virtual currency market, activities are going at a brisk phase in the sector.
Trade between Tokens
However, the investment amount was not disclosed by Singapore’s state investment enterprise. The cryptocurrency exchange, which moved out from China to Japan before the country slapped a ban, basically manages trades among digital currencies. Interestingly, the funding is a joint investment by Vertex Ventures Southeast Asia & India and Vertex Ventures China. The company aims to provide enough support to fiat-to-crypto gateways, as well as, services in the region.
Binance was originally founded in China in 2017 and shifted its headquarters anticipating a domestic ban on the emerging sector. The exchange has been involved in opening offices in more countries. For instance, it has launched its shop in March in Taiwan while it has plans to make its presence in Jersey to cater to Europeans. The company indicated earlier about its intentions to have an office in Malta suggesting that the latest development is part of its expansion program.
Changpeng Zhao, the founder of Binance, stated,
More important than how much you raise, is who you raise it from. Finding a strategic investor who genuinely wants to help you is key. Many thanks to Vertex Ventures for all the help!
As far as Vertex is concerned, its investment in the emerging asset class exchange is an approval of a relatively new industry. Significantly, the sector is trying to attract institutional investors slowly and steadily. For instance, Mike Novogratz’s Galaxy Digital Ventures has made its investments in BitGo Holdings, which is a startup for virtual assets custodian. Custodial activity is one of the issues that curb the institutional money from entering into the crypto sector.
Binance, which is spreading its wings, intends to enable users to exchange digital coins into the Singapore currency. Though there are uncertainties clouding over the crypto market, it is a fact that established names are foraying into the sector thus leading the market towards stability and maturity. For its part, the regulator should come up with recommendations to remove fraudsters.
Image via Binance