Swiss crypto asset manager raises $14.5M Series B to expand into Asia

Crypto Finance AG, a Switzerland-based crypto asset management, trading and custody firm, has raised CHF 14 million (~$14.5 million) in Series B financing.

The round was led by Swiss investor Rainer-Marc Frey and Asia-based Lingfeng Capital, with participation from QBN Capital and other existing and new investors.

With the fresh capital in place, Crypto Finance AG looks to expand its products and services into Asia, the firm's founder and CEO Jan Brzezek told The Block.

“We are working towards replicating our domestic successes internationally, starting with our expansion into Asia via our Singaporean subsidiary, and enhancing our coverage of the target market in Germany and the UK,” said Brzezek.

Crypto Finance AG operates three companies within its group - Crypto Fund AG (FINMA-regulated asset manager), Crypto Broker AG (active in crypto trading) and Crypto Storage AG (which provides custody infrastructure and tokenization solutions).

Brzezek told The Block that Crypto Broker AG is awaiting a Securities House license in Switzerland, which would allow the firm to trade derivatives.

“We won‘t become a second CME or BitMEX. We will just build structured products as many investment banks, but just for crypto,” Brzezek told The Block, quashing misreporting by CoinDesk, which states that "Crypto Finance AG plans to operate as a regulated derivatives market similar to Chicago’s CME Group."

Giving an update on Crypto Storage AG, Brzezek told The Block that the firm is "closely working with various banks on asset tokenization and other direct forms of blockchain implementation, and hope to announce successful results and expand on our expertise throughout this year."

There are currently over 35 people working for Crypto Finance AG across its three companies, said Brzezek. Crypto Fund AG employs 6 full-time employees, Crypto Broker AG employs around 16 people, and Crypto Storage AG currently operates as a team of 7.

“We are constantly looking for new talent, and hope to further expand the team throughout this year,” Brzezek told The Block.

Crypto Finance AG started raising for the Series B round last September and engaged the “Big Four” consulting firm PwC for investor introductions. The round brings the firm’s total funding to date to over CHF 36 million (~$37 million) since founding in 2017. Brzezek declined to disclose valuations. 

Looking ahead, Crypto Finance AG could raise more funds shall the need arise, said Brzezek.