Temasek Holdings’ venture capital arm Vertex Ventures recently made an investment in the cryptocurrency exchange Binance with the aim to expand in Singapore. Vertex will develop an exchange in Singapore that will facilitate fiat to cryptocurrency transactions. The capital firm is yet to disclose the amount of money it invested. Binance offers a platform for trading digital tokens as well.
Vertex Ventures China and the Vertex Ventures Southeast India & Asia jointly invested in Binance. The joint funding is also supporting several other fiat-to-crypto gateways and services all through Southeast Asia. Vertex is Southeast Asia’s oldest venture capital firm and investing in the crypto market is a new industry for it.
Recently, Galaxy Digital Ventures, owned by Mike Novogratz, the billionaire Bitcoin (BTC) champion, and Goldman Sachs Group invested in a cryptocurrency custodian startup firm, BitGo Holdings Inc. Binance, established almost a year ago faced run-ins with authorities from Hong Kong, Japan and very recently in New York. The exchange will now allow users to swap digital currencies into Singaporean dollar.
Instability of Bitcoin continues
Most of the major companies in the IT sector are now trying out cryptocurrency platforms and making major investments in cryptocurrency exchanges. However, most banking giants and institutional financers still do not favor the digital tokens because of the volatility of the crypto market which is most of the time unstable.
Importantly, many countries are yet to come up with regulations due to which many crypto traders, as well as companies, are uncertain about the fate of their investments. Since December of last year, Bitcoin has lost 67% of its value.
With its investment in the cryptocurrency exchange, Binance Singapore wants to become one of the biggest hubs for financial innovation and technology in Asia. Despite warnings from policymakers related to risks associated with crypto market, Vertex Ventures is still confident of its investment.