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Coinbase-backed crypto trading firm hits $1 billion valuation after fresh funding round

Amber Group, a cryptocurrency financial services firm, has raised $100 million as investors rush to back companies in the industry.

The fresh funding round values the Hong Kong-based start-up at $1 billion.

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Amber Group, a cryptocurrency financial services firm, has raised $100 million as investors rush to back companies in the industry.

The fresh funding round values the Hong Kong-based start-up at $1 billion.

Investment bank China Renaissance led the round with participation from other high-profile investors including New York-based Tiger Global Management. Existing investors, which includes Coinbase’s venture arm, were involved.

The latest funding round continues a flurry of funding activity in the cryptocurrency industry.

In the second quarter of 2021, venture capital investment into cryptocurrency and blockchain start-ups totaled $14 billion, according to data from PitchBook provided to CNBC. That compares to just $600 million in the same period last year.

Interest in cryptocurrencies, particularly in bitcoin, rose this year as institutional investors and large corporations jumped in. Payments processor Square and electric vehicle maker Tesla are among the companies that have purchased bitcoin.

But after touching a record high of $64,829.14 in April, bitcoin has plunged by nearly half.

Business model
Amber Group has typically sold products to institutional investors and wealthy individuals including algorithmic trading and lending products.

Rather than being a cryptocurrency exchange that allows users to trade individual digital coins, Amber Group CEO Michael Wu said the company is bringing a “private banking experience to every day customer.”

Wu says the company offers investors a number of different cryptocurrency products to invest in.

Amber Group said it is on track to book revenue of $500 million by the end of this year and has been profitable “since inception.”

According to Wu, between 70% and 80% of the company’s revenue comes from so-called net interest margin — a measure of lending profitability. Amber Group takes on customers’ deposits and offers them an interest rate. They then lend out the money from a pool of deposits to other entities at higher interest rates and make money from that spread.

About 15% of revenue comes from trading fees.

While the majority of the company’s customers are institutional investors, Wu said Amber Group is making a push to gain individual investor customers.

“We don’t advocate heavy speculation or high use of leverage, rather we want our customers to be more long term, focus on risk management and get stable and attractive yield,” Wu said.

Strategic acquisitions
The CEO said the fresh capital raised will be used to “hire even more aggressively” and to make strategic acquisitions in areas such as cybersecurity.

But Wu said the company is also looking to acquire others that have regulatory licenses in certain jurisdictions, which could allow Amber Group to enter a new market.

Regulation around cryptocurrency investing differs around the world and is quite fragmented.

“I think regulation is always a challenge for this industry because it’s a very global industry,” Wu said. “It’s always about staying ahead, or at least staying aware of the different regulation. We always take a very conservative approach to that.”

Source Credits: CNBC

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Vitalik Buterin criticizes crypto’s moral shift toward gambling

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Ethereum co-founder Vitalik Buterin has expressed concerns over a “moral reversal” in the crypto industry, particularly regarding criticism of Ethereum’s stance on blockchain gambling. In a recent AMA, he noted that some have condemned Ethereum for not welcoming casinos, while other blockchains have embraced them. Buterin stated that if the community continues to shift its values in this direction, he may reconsider his role in the space.

Despite these concerns, Buterin emphasized that in-person interactions with the Ethereum community reassure him that core values remain intact. He urged developers to work toward a decentralized future aligned with ethical principles rather than just profit-driven ventures.

His comments coincide with the Ethereum Foundation’s shift in its funding approach. Following criticism of its Ether sales, the foundation recently allocated 45,000 ETH into DeFi platforms like Aave and Compound. This move was widely praised as a step toward supporting decentralized finance without market disruptions.

As Ethereum navigates these challenges, Buterin’s remarks highlight the ongoing debate about blockchain ethics and the industry’s future direction. The conversation around gambling applications and decentralized finance underscores the tension between financial innovation and maintaining a moral compass in crypto.

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UAE saw 41% increase in crypto app downloads in 2024

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Crypto app downloads in the UAE surged by 41% in 2024, reaching 15 million, with a record 2.8 million installs in December, according to AppsFlyer. This increase was largely driven by market trends and rising adoption, especially in the latter half of the year.

Donald Trump’s election win and pro-crypto stance reportedly played a role in boosting adoption, with his surprise memecoin launch further attracting first-time investors. This trend also contributed to a rise in crypto app downloads in the U.S.

Aggressive marketing campaigns accounted for 60% of traffic, though retention remained a challenge, as one in five apps was uninstalled within 30 days. Despite this, crypto app downloads in the UAE hit 3.5 million in January, surpassing half of 2023’s total.

With 2025 projected to be a record-breaking year, market experts suggest crypto companies should continue leveraging marketing strategies to expand their user base. The UAE’s rapid growth in crypto adoption highlights the region’s increasing role in the digital asset industry.

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Brazil approves first spot XRP ETF as local bank eyes stablecoin on XRPL

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Brazil has approved its first spot XRP exchange-traded fund (ETF), the Hashdex Nasdaq XRP Index Fund, which will soon begin trading on the country’s B3 exchange. The fund, managed by Hashdex, joins a growing list of crypto investment products in Brazil, including Bitcoin and Ethereum ETFs. The approval comes as the U.S. Securities and Exchange Commission (SEC) reviews multiple spot XRP ETF filings from major firms like CoinShares and WisdomTree.

In response to this development, XRP saw an 8% price increase, reaching $2.72, bringing it within 20% of its all-time high. This surge reflects growing investor confidence in XRP-based financial products. Meanwhile, market analysts expect the approval of additional crypto ETFs worldwide as regulators reassess their stance on digital assets.

Simultaneously, Braza Group, a financial institution in Brazil’s interbank market, announced plans to launch BBRL, a stablecoin pegged to the Brazilian real. Built on the XRP Ledger, BBRL aims to enhance international payments and digital asset accessibility in South America. Initially, the stablecoin will be available only to institutional clients, with broader adoption expected in 2025.

Braza Group’s participation in Brazil’s central bank blockchain initiative, DREX, underscores the country’s efforts to integrate digital assets into its financial system. With crypto adoption surging, Brazil’s latest moves in stablecoin and ETF approvals signal growing institutional confidence in blockchain-based finance. Read more.

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