In the Series B funding of Swiss holding company Crypto Finance AG, the firm secured $14.5 million. The Swiss investor Rainer-Marc Frey, a Beijing-based private equity firm Lingfeng Capital and QBN Capital of Hong Kong co-led this funding round.
The firm began its funding round in September 2019 and decided to finish it two weeks before April 16, 2020, but due to the financial crisis, which occurred because of COVID-19, the firm was not able to do so.
Crypto Finance AG’s Three Subsidiaries
CryptoFinance AG has three sections that are operated under the firm only. The three sections of the firm are Crypto Fund AG, Crypto Broker AG and Crypto Storage AG.
The founder and the CEO of Crypto Finance AG, Jan Brzezek, recently has said that the firm would be using the Series B funding in getting a broker-dealer license from FINMA, the SWISS financial regulator, for its subsidiary, Crypto Broker AG.
In October 2018, the FINMA approved the license of Crypto Broker AG’s sister-firm, Crypto Fund AG.
Funds Will Be Used For Securing Brokerage License
Brzezek further stated that for the last 18 months the Crypto Broker AG has been trying to get license approval from FINMA and currently, the firm is in its final stage. After receiving the license the Crypto Broker AG could start the trading of cryptocurrency for banks and other larger regulated market players.
Additionally, Brzezek stated, “don’t want the hassle of connecting [with] different exchanges and brokers. … But they connect their API or order management systems to our infrastructure and then they can trade around the world”.
Although the Crypto Brokerage AG is not like the best brokers in the market i.e Genesis Capital or Cumberland, it would surely provide the best execution feature to the traditional players.
Currently, the Crypto Finance AG has been planning to shift to the crypto derivatives market too. Like the CME Group, the firm might also start its regulated derivatives market, soon.
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