Tesseract completes fundraising to power growth of its digital asset lending solutions
21 June 2021 Finland
Image: ryhor bruyeu/adobe.stock.com
Helsinki-based Tesseract, a provider of digital asset lending solutions, has raised $25 million in a recent funding round.
This Series A fundraising 鈥� Tesseract鈥檚 first significant attempt to raise VC funding 鈥� was led by Augmentum Fintech, which specialises in investments in fintech companies. A number of global venture capital companies also participated, including BlackFin Capital, DN Capital, LeadBlock Partners, Concentric and Sapphire Ventures.
Tesseract indicates that institutional flows to digital assets are increasing rapidly, with institutional ownership of digital assets predicted to rise from their current 10 per cent level to 30 per cent by 2025.
It aims to bridge institutional capital flows between traditional and digital asset finance, offering core products in margin lending, OTC lending, decentralised finance and partnerships with retail trading platforms.
This funding will be employed to hire new talent, to reinforce existing partnerships and to extend innovation in 鈥渘ew undisclosed financial products鈥�.
Tesseract also plans to add new developments to its cross-trading venue margin lending platform, which has seen significant growth in its user community over the past 12 months.
It notes that institutional interest in digital asset finance is highly undeveloped, as reflected by these strong growth expectations for the market.
Martyn Holman, partner in lead investor firm Augmentum Fintech, says: 鈥淲e are witnessing wholesale changes to the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity.
鈥淔ollowing the separation of custody and trading in the first waves of the evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities鈥�.
This Series A fundraising 鈥� Tesseract鈥檚 first significant attempt to raise VC funding 鈥� was led by Augmentum Fintech, which specialises in investments in fintech companies. A number of global venture capital companies also participated, including BlackFin Capital, DN Capital, LeadBlock Partners, Concentric and Sapphire Ventures.
Tesseract indicates that institutional flows to digital assets are increasing rapidly, with institutional ownership of digital assets predicted to rise from their current 10 per cent level to 30 per cent by 2025.
It aims to bridge institutional capital flows between traditional and digital asset finance, offering core products in margin lending, OTC lending, decentralised finance and partnerships with retail trading platforms.
This funding will be employed to hire new talent, to reinforce existing partnerships and to extend innovation in 鈥渘ew undisclosed financial products鈥�.
Tesseract also plans to add new developments to its cross-trading venue margin lending platform, which has seen significant growth in its user community over the past 12 months.
It notes that institutional interest in digital asset finance is highly undeveloped, as reflected by these strong growth expectations for the market.
Martyn Holman, partner in lead investor firm Augmentum Fintech, says: 鈥淲e are witnessing wholesale changes to the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity.
鈥淔ollowing the separation of custody and trading in the first waves of the evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities鈥�.
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