Augmentum Fintech has led a $25 million investment round in Finnish institutional crypto firm Tesseract.
Tesseract bridges institutional capital flows between traditional and digital asset finance, offering product in margin lending, OTC lending, and white label crypto lending packages for institutional clients ranging from hedge funds to market makers and wallet providers.
Yichen Wu, CEO and founder of Tesseract, says: “The funding will be aimed towards developing our industry-leading institutional offerings even further, hiring new talent to develop new and existing partnerships, and to boost innovation in new undisclosed financial products. We will also focus on developing our cross-trading venue margin lending platform. Due to the global nature of our fast-moving business, we will also funnel efforts into spearheading our global growth and ensuring regulatory compliance globally.”
The Helsinki -based digital asset lender has been profitable since early 2020, experiencing 20x growth year on year as institutions pile in to the crypto space.
Martyn Holman, partner at Augmentum Fintech, comments: “We are witnessing wholesale changes in the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity. Following the separation of custody and trading in the first waves of evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities."
News of the investment comes as Augmentum Fintech bids to raise a further £40 million to bolster its funding capabilities through a new share issue, having deployed substantially all of the capital raised through its IPO in 2018 as well as issues thereafter
Other participants in the round include global venture capital firms BlackFin Capital Partners, Concentric, DN Capital, Jabre Capital Partners Family Office, LeadBlock Partners, and Sapphire Ventures. Industry participants Coinbase Ventures, Wintermute, and Woorton also subscribed to the round along with undisclosed local and international investors and strategic angels. Icebreaker.vc, which made its first investment in Tesseract in 2018, also participated in the round.