Celsius Network Raises $400 Million in an Funding Round Led by WestCap
Celsius Network– a leading cryptocurrency lending platform – recently received a $400M investment from equity firm WestCap and investment group Caisse de dépôt et placement du Québec (CDPQ). With this, Celsius is now valued at over $3 billion USD.
New Funds For Celsius
As stated in a press release, the company’s new proceeds will go towards expanding its product offerings and further bridging crypto to traditional finance.
It will specifically focus on developing products suited to large-scale institutions, which have taken an unprecedented interest in the space. For example, a recent analysis from JP Morgan states that institutions are preferring Bitcoin over gold as an inflation hedge.
Another part of Celcius’s funds will be used to expand their team to double its current capacity, from 486 to almost 1000 employees. From an adoption perspective, the lender has already seen considerable growth, now with 1 million registered customers. It has paid out over $850 million in interest to those users over a three-year period.
Alex Mashinsky– CEO of Celsius Network– believes the recent investment will help his company revolutionize the financial industry:
“We are pleased by the response we received from many leading financial investors during this fundraise. The partnership with WestCap and CDPQ puts Celsius in a position to grow and further its mission to leverage blockchain technology to connect and decentralize the traditional finance”
Regulatory Compliance From Celsius
Meanwhile, Laurence Tosi– Founder and Managing Partner at WestCap– thinks Mashinsky and Celsius have the correct framework and approach to consumer protections in order to comply with regulators.
“Celsius is committed to working constructively with regulators to better understand the dynamic crypto space, protect retail customers from fraud and undue risk, and create general consumer knowledge to allow for thoughtful investment decisions.”
Tosi’s comments are a breath of fresh air for Celsius, which has received backlash from regulators. Both Texas and New Jersey targeted Celsius recently for offering unlicensed ‘securities’ to its customers. While Mashinksy disagreed with the allegations, he stated that he remains committed to cooperating with regulators.
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