The SBI-Sygnum-Azimut Digital Asset Opportunity (DAO) fund announced today in a release that it made its first investment into Coinhako, a Singapore-based cryptocurrency exchange.
While the statement did not disclose the funding value, it specified that proceeds will be used to expand Coinhako geographically in Southeast Asia. Also, the exchange will work on growing verticals that focus on institutional and high-net-worth customer segments.
Considering big investors are looking at crypto to “risk-off” investments in equity and other asset classes, it could be a profitable vertical for the exchange. A recent report had also highlighted that a third of professional investors have dived into crypto while 55% have increased their crypto allocation.
Co-Founder and CEO of Coinhako, Yusho Liu, stated,
“Today, we are excited to onboard a new set of strategic investors with a strong presence in Singapore to accelerate our growth in the financial hub and across the region.”
It is worth noting that Coinhako recently received approval from the regulator to provide digital payment token services under the Payment Services Act supervised by the Monetary Authority of Singapore (MAS).
After the approval, Coinhako’s fundraising round was three times oversubscribed and included institutional investors like Japan’s SBI Group.
Director of the Digital Asset Opportunity fund, Alice Mak, commented,
” As we continue to invest in top digital asset companies, the fund will provide them with a platform to accelerate their growth by leveraging the strength of our existing network and the future network of the fund’s portfolio.”
While Coinhako was launched in 2014, Singapore’s crypto environment has hugely changed since then. Recently, MAS released a list of 70 platforms that have applied to provide digital asset services in the country, with notable applicants like Coinbase and Binance.
While the country has kept a crypto-friendly outlook, it has been regulating the sector to curtail risks like money laundering and terrorism financing.