Crypto Exchange Zipmex Raises $41M in Series B to Further Its Banking Services

Singapore-headquartered digital asset exchange Zipmex has completed its $41 million Series B funding round with participation coming from one of Thailand’s largest banks.

Krungsri Finnovate, the corporate venture capital arm of Thailand’s fifth-largest bank by assets, Bank of Ayudhya, joins Thailand’s major multimedia companies Plan B Media and Master Ad (MACO), both of which recently invested $9.2 million as part of the raise earlier this month. Other investors in the round have not yet been made public.

The Bank of Ayudhya, which is part of Japan’s Mitsubishi UFJ Financial Group (MUFG), is one of the first banks globally, and the first in Southeast Asia, to invest in a digital asset platform, Zipmex said in a press release on Tuesday.

With the fresh injection of capital, Zipmex plans to further develop its technological infrastructure, engage in new business partnerships, attract new talent and diversify its offerings.

Marcus Lim, founder and CEO, told CoinDesk via phone interview the funding will also be used to further expand into its key markets in Indonesia and Thailand while the exchange awaits its licensing from the Monetary Authority of Singapore, the country’s top financial watchdog. The exchange currently has an exemption under the Payment Services Act, Singapore’s framework for the regulation of digital payment systems and payment service providers.

Zipmex is primarily focused on the fiat to crypto spot market and recently expanded its vision from being “just an exchange” to a “digital asset bank,” according to its founder.

“The first step toward that vision has been to offer an interest-bearing account,” said Lim, who points toward Zimex’s “earn” product. “The other two services we are looking to launch, which are the pillars of banking, are lending and also payments.”

Zipmex began its journey in January 2019 in Thailand just as the regulatory landscape was beginning to take form as the country began introducing mandatory licensing for crypto exchanges. While Zipmex awaited its licensing from Thai regulators, the exchange expanded into other regions across Southeast Asia including Indonesia and Australia.

Read more: Singapore Crypto Exchange Considers IPO After 500% Trading Growth: Report