Coinbase Global (COIN) has made a strategic investment in Singapore-based cryptocurrency exchange Zipmex. The acquisition was thought to be called off, having halted during communications back in March this year, but the deal was completed.
Zipmex has reportedly planned to raise $40 million in a Series B+ funding round, with the aim of pushing its valuation upwards of $400 million. Touted as the exchange for South-East Asian investors, Zipmex has big plans for the future.
A Strategic Move For Coinbase
Zipmex is an appealing investment, as it offers something unique in the region and the project looks really exciting. Having raised $41 million in a Series B funding round last year, with Thailand's largest bank, Bank of Ayudahya, investing a large stake, the business has begun to take shape.
The exchange is based in Singapore, but it has offices in Thailand, Indonesia and Australia, with the aim of targeting these markets. Zipmex’s vision appeals to Coinbase, which stands as the third biggest exchange in the US, as they look to take a stake in global crypto trading activities.
Coinbase was keen to get things completed back in March, but talks broke down with the company opting against the investment. The finer details of the deal remain discrete, but we expect to hear more from this as Zipmex looks elsewhere for further investment.
Coinbase’s shares were up 1.45% after the announcement of the deal, but it’s down 5.3% and trading at around $52.
Not The First Crypto Business To Invest This Year
Coinbase isn’t the only major cryptocurrency exchange branching out while the bear market continues, with Binance Labs investing in various projects in the last few months. In fact, Binance has ambitions to continue to develop the space, investing some $500 million in “Web3” and blockchain innovation.
Other institutions such as Goldman Sachs are always investing in blockchain technology, teaming up with US-based exchange FTX, and building a derivatives platform to provide FTX products to Goldman clients.