Amber Group, a cryptocurrency financial services firm, has reportedly raised USD 100 million during a funding round and is now worth USD 1 billion. This funding round was led by China Renaissance and also saw participation from Tiger Global Management as well as Coinbase’s venture division.
For those unaware, Amber Group is known to provide cryptocurrency trading services to institutional investors or deep-pocketed individuals that include algorithmic trading and lending products. Apart from this, the company intends to provide a private banking experience to its customers.
According to the reports, trading volume on the crypto platform has doubled to USD 500 billion from USD 250 billion since the beginning of 2021. Moreover, Amber Group is likely to generate revenues worth USD 500 million by the end of this year and has seemingly been in profit since its existence.
Micheal Wu, CEO at Amber Group was quoted saying that the company is planning to use the fresh investment to hire aggressively and strategize its acquisitions preferably in the field of cybersecurity.
Stating regulations as one big hurdle, Wu added that Amber Group will now focus on companies that have regulatory permissions in their respective jurisdictions to ease out operations while having an edge over its competitors.
The Hong Kong-based Amber Group generates approximately 80% of its margins from its credit products income while around 15% comes from trading fees, sources claimed. The company usually avoids high-risk trading and prefers its customers to focus on long-term stability while receiving appreciable remunerations by focusing on risk management.
It is also worth mentioning that around USD 14 billion has been invested in cryptocurrency and blockchain startups during the second quarter of 2021 as compared to the previous USD 600 million during the same quarter in 2020.
This surge in investments comes after cryptocurrencies were approved by institutional investors and large corporations.