It may be “crypto winter,” but investment in the sector continues to pour in, indicating a belief in the industry’s ability to rebound and generate profits.
In one of the biggest moves in the crypto space recently, London-based venture capital giant Northzone has raised €1 billion (about $1 billion) to form a fund that will focus on crypto and fintech startups.
The company, which has previously invested in companies like Spotify and Klarna, and web3 and DeFi startups like Sunscreen, Gro, and Magic Labs, plans to fund companies from early stages through initial public offerings.
Wendy Xiao Schadeck, a partner at Northzone, said the fund sees the digital asset industry as its “core sector” for them. “We’re keeping an incredibly open mind for the next generation of founders to define totally new categories as well,” she added.
Fidelity Crypto History
Fidelity Investments, one of the largest US stockbrokers, is considering allowing Bitcoin trading for individual investors, sources say. There has been no official announcement to customers yet, but Fidelity plans to provide the service to its more than 34.3 million brokerage accounts.
The CEO of a digital bank and crypto services platform, Galaxy Digital, Mike Novogratz, has hinted that Fidelity could become his client in the near future.
“A bird told me that Fidelity, a little bird in my ear, will soon transition its retail customers to crypto. I hope that bird is right. And so we are seeing this institutional march,” he said at the SALT conference in New York.
Fidelity “came” into Bitcoin in 2018 by offering Bitcoin trading activity to their hedge funds and institutional investors in 2018. Earlier this year, it launched 401(k) retirement plan offerings to corporate clients. .
JPMorgan & Ownera
JPMorgan, joined by private asset management firm LRC Group, participated in a $20 million seed round for tokenized asset infrastructure startup Ownera.
Ownera, an open-source protocol that supports the tokenization of securities on a public or private blockchain, plans to bridge tokenized platforms and traditional financial firms.
Last year, JPMorgan became one of the first major US banks to offer crypto trading to its clients. The company began advising its wealth management clients on access to cryptocurrency funds and raised approximately $45 million to offer the service through two different funds.
KKR & Securitize
A San Francisco-based digital asset securities firm, Securitize has become the first company to offer token exposure to a global investment fund, Kohlberg Kravis Roberts & Co., or KKR.
The Securitize fund is managed by Securitize’s digital asset management arm, Securitize Capital, which will provide exposure to KKR’s Healthcare Strategic Growth Fund II (“HCSG II”) using the public blockchain Avalanche.
The digital asset security platform leverages blockchain to raise capital, issue tokenized assets, onboard investors, and provide secondary trading.
Dan Parant, Managing Director and Co-Head of U.S. Private Wealth at KKR, explains the global fund’s desire to try blockchain: “With its ability to digitize operational inefficiencies and increase ease of use for individual investors , blockchain technology has the potential to play an important role in the future of private markets.
An EDXM market backed by financial industry giants like Fidelity Digital Assets, Charles Schwab, Sequoia Capital, Citadel Securities and Virtu Financial has become fully operational.
EDXM is a platform that supports trading of digital assets through trusted intermediaries available to US retail and institutional investors. The platform will be powered by MEMX technology, a customer-centric marketplace operator founded in 2019.
Platform representatives say they have big plans for the future of EDXM, with other big players joining the board soon.
We look forward to welcoming additional participants to the exchange, which will drive continued trading in this important asset class while creating a virtuous cycle of continuously improved liquidity and efficiency underpinned by MEMX’s technology,” said said EDX Markets CEO Jamil Nazarali.
Web3 is also supported
But it’s not just trading platforms and digital asset services that are getting funding right now. According to the latest DappRadar report, metaverse and web3 gaming projects have raised $748 million in investments since August from investment giants like Temasek.
“The amount of investment demonstrates that despite challenging and uncertain conditions in digital asset markets, leading investment entities remain bullish on the GameFi industry,” the DappRadar report said.
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