Sequoia joins $3.9m round of HK digital assets platform

As the broader crypto market stagnates amid the prospect of rising interest rates, high inflation, and geopolitical uncertainties, an investment platform for digital assets has caught the attention of investors for offering a annual percentage yield of up to 90% on major cryptocurrencies – which is higher than normal.

Hong Kong-based Finblox has raised US$3.9 million in a new funding round from fintech and crypto-focused investors including Dragonfly Capital, Sequoia Capital India, and Saison Capital.

Finblox founders Peter Hoang and Dmitriy Paunin/ Photo credit: Finblox

Three Arrows Capital, MSA Capital, Coinfund, Venturra Discovery, Kyros Ventures, First Check Ventures, Ratio Ventures, Coins.ph founder Ron Hose, Xfers founder Tianwei Liu, and other angel investors also participated in the round. 

Launched in December 2021, Finblox said it offers one of the highest interest rates in the digital assets space. It offers up to 90% yield on cryptocurrencies such as Bitcoin, Ethereum, Solana, Avalanche, and Axie Infinity tokens. The platform also has no limits on minimum balances or withdrawal periods.

Users on the platform can earn a 15% annual percentage yield on USD Coin, a stablecoin pegged to the US dollar. The company generates yield on tokens through a range of strategies, including lending out the assets to financial institutions or trusted decentralized finance protocols.

The company was founded by Peter Hoang and Dmitriy Paunin. Hoang had previously co-founded Gotrade, a zero-commission stock-trading app backed by Y Combinator, while Paunin has been CTO at Coins.ph, a Philippines-based cryptocurrency exchange that has amassed over 16 million users. 

See also: The Philippines: Asia’s next crypto hub?

“Southeast Asia has grown to be one of the most active markets over the past year, yet product infrastructure is still lacking to support the rapid growing demand,” said Mia Deng, partner at Dragonfly Capital.

Finblox will use the fresh funds to hire key employees across its engineering and product teams. A significant part of the investment will go toward accelerating its regulatory compliance processes, marketing, and user education initiatives.

Wild West in cyptocurrencies

Gary Gensler, Chair of the US market regulator, has said the crypto markets are like the “wild west,” with insufficient protections for investors. Investors are often cautioned that high-yield crypto accounts don’t offer the same protections as traditional bank and brokerage firms.

Image credit: Timmy Loen

The US Treasury Department has also called for legislation, requiring some crypto issuers to be insured just as banks are.