Babel Finance is a technology company.
Babel Finance has raised $120.0M across 2 funding rounds.
Babel Finance has raised $120.0M in total across 2 funding rounds.
Babel Finance is a Hong Kong-based cryptocurrency financial services provider founded in 2018, specializing in crypto asset lending, trading, asset management, brokerage, derivatives strategies, and mining-related services for institutional investors and ultra-high-net-worth individuals.[2][3][4] It evolved from a crypto lending platform targeting miners to a comprehensive asset manager, reaching a $2 billion valuation in a $80 million Series B round in 2022 backed by investors like Jeneration Capital, 10T Holdings, Dragonfly Capital, and BAI Capital, with over $3 billion in outstanding loans and $800 million average monthly derivatives trading volume by late 2021.[2][5] The company serves over 500 organizations, focusing on sophisticated instruments for Bitcoin, Ether, and select stablecoins while maintaining a healthy balance sheet through institutional funding and hedging.[2][3]
Babel Finance launched in July 2018 as one of the first crypto lending services, initially targeting miners and institutions with low-interest, high-LTV loans backed by claims of low-risk collateral.[1][4] Co-founder and CEO Del Wang led the Hong Kong-based firm (formerly Babel Bank), which quickly scaled by leveraging BTC price rises for profits through high capital leverage rather than traditional spreads.[1][2] A pivotal moment came during the "3.12" BTC crash in March 2020, when rapid price drops triggered margin calls Babel couldn't meet, leading to defaults on positions with Tether, BlockFi, and others; it raised emergency funds via high-yield products and user liquidations to recover as prices rebounded.[1] This crisis prompted diversification into options hedging, capital management, mining pools, and institutional credit lines, fueling growth to a $120 million total equity raise by 2022.[1][2]
Babel Finance capitalized on the 2018-2022 crypto bull market's demand for institutional-grade DeFi alternatives, riding trends in on-chain lending and derivatives amid retail exchange growth.[2][4] Its timing aligned with miners' financing needs and institutions seeking yield in volatile assets, influencing the ecosystem by pioneering high-LTV loans and hedging that pressured competitors like Celsius and 3AC during 2022 contagion.[1][3] Market forces like BTC leverage profitability and post-crash regulations favored its Asia-Pacific pivot, but exposure to counterparty risks (e.g., 3AC loans) highlighted crypto's interconnected fragility, contributing to sector bankruptcies and calls for better risk controls.[1][3]
Babel Finance faces an uncertain path post-2022 crypto winter, with its last noted activity a "loan" funding round amid 2023 bankruptcy mentions tied to 3AC losses, signaling potential distress or restructuring.[3] Regulatory clarity in Singapore/Hong Kong and BTC halvings could revive institutional lending if it strengthens balance sheets further. Its influence may shift toward compliant asset management in a maturing market, but renewed volatility risks repeats of 2020/2022 crises—watch for hedging efficacy and counterparty transparency to gauge resilience.[1][2][3] This leverage-savvy player underscores crypto finance's high-stakes evolution from boom to disciplined growth.
Babel Finance has raised $120.0M in total across 2 funding rounds.
Babel Finance's investors include 10T Holdings, Andreessen Horowitz, Archetype, Bertelsmann Asia Investments (BAI), Blockchange Ventures, Dragonfly Capital Partners, Hashed, Korea Investment Partners, Northside Ventures, Pantera Capital, ParaFi Capital, Seven Seven Six.
Babel Finance has raised $120.0M across 2 funding rounds. Most recently, it raised $80.0M Series B in May 2022.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| May 1, 2022 | $80.0M Series B | 10T Holdings, Andreessen Horowitz, Archetype, Bertelsmann Asia Investments (BAI), Blockchange Ventures, Dragonfly Capital Partners, Hashed, Korea Investment Partners, Northside Ventures, Pantera Capital, ParaFi Capital, Seven Seven Six, White Star Capital, Stani Kulechov | |
| May 1, 2021 | $40.0M Series A | Andreessen Horowitz, Archetype, Blockchange Ventures, Dragonfly Capital Partners, Hashed, Pantera Capital, ParaFi Capital, Stani Kulechov |