Crypto Lender Celsius Closes $ 400 Million Funding Round

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Celsius Network joins a long list of crypto companies to announce a mega-increase this year.

Celsius credit firm reaches $ 3 billion valuation

Celsius closed a $ 400 million investment round, the crypto lender said in a press release on Tuesday. The round was co-led by WestCap and the Caisse de depot et placement du Quebec (CDPQ) and values ​​the company at $ 3 billion.

The company said it plans to deploy the newly raised capital to expand product offerings, launch new institutional-grade products and double the number of its employees.

Celsius is one of the largest centralized crypto lending companies, alongside BlockFi. According to its records, since its launch in 2017, Celsius has processed $ 25 billion in total assets and paid $ 850 million in interest through its flagship product, Earn.

Discussing the investment, Celsius CEO Alex Mashinsky said the project would aim to expand its operations in traditional capital markets. He added:

“The partnership with WestCap and CDPQ enables Celsius to grow and continue its mission of leveraging blockchain technology to connect and decentralize traditional finance. “

Users who deposit their cryptocurrencies on Celsius earn over 8.8% APY on stablecoins like USDT and 3.51% on Bitcoin. With the DeFi boom that started in 2020, the company faced stiff competition from decentralized lending platforms like Aave and Compound.

It has also had its fair share of regulatory issues. In September, regulators in Texas, New Jersey and Alabama blocked loan accounts offered by Celsius, alleging the company was offering unregistered securities. Coinbase suffered a similar fate last month when the SEC threatened to continue trading on its own loan product.

According to a recent Bloomberg report, Celsius has already taken out a $ 1 billion loan from its investor Tether Holdings, the controversial issuer of the USDT.

Disclosure: At the time of writing, this author does not own any crypto tokens mentioned in the article.

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