Matrixport Financial Services Goes Live for Bitmain Billionaire Founder
Chinese cryptocurrency mining tycoon Jihan Wu placed his new financial services venture into open beta on Monday morning. Matrixport is a financial services outfit that focuses on over-the-counter trading, lending, and custodial services.
Wu, a Bitcoin billionaire more infamously associated with Bitmain, is a major shareholder in the new project, along with several other undisclosed venture firms. The move is expected to rival other firms looking to capitalize on institutional money entering the cryptocurrency space.
Thus far, the market has been dominated by U.S. companies in the form of BitGo, Coinbase, and Gemini. With much of Asia’s wealth tied up in China, Matrixport may be the first of several new companies looking to cash in on Eastern interest in the next bull run.
Matrixport to Compete in Asian Custodial Market
CCN last reported that an offshore holding company would likely be the workaround for Bitcoin mining related ventures in China. That has now been confirmed after Matrixport revealed the location of their headquarters in Singapore, a country with more liberal ties to digital currencies.
Earlier this year, the Chinese government sought to ban mining outright though little has actually resulted from that decision. While Matrixport does not deal in cryptocurrency mining per se, the company has close ties to Bitmain.
A large amount of the 100 or so staff at Matrix are previous Bitmain employees. Speaking with Bloomberg, Matrixport Chief Executive Officer Ge Yuesheng said:
“We are closely tied to Bitmain by our origin but because we operate in different businesses, we are partners rather than competitors.”
Impeccable Timing as Bitcoin Recovers Price Gains
Bitmain’s IPO fell flat in Q3 last year after failing to garner interest as the price of Bitcoin dwindled to $3,000. Bitcoin’s price recovery this year, however, has been nothing short of spectacular.
A solid performance from digital gold (a.k.a Bitcoin) for the remainder of the year will likely see renewed interest in Wu’s product offering. BTC is up 230% since January 1st thanks to the stampeding bulls propping up the daily bids.
Bitmain is anticipated to relaunch its IPO in the second half of 2019. Another move likely to take advantage of Bitcoin’s price resurgence. This time it hopes to finalize the deal in the U.S. instead of Hong Kong. The company plans to raise between $300 and $500 million from U.S. investors.