The investment arm of the world’s largest cryptocurrency exchange has made an investment in a San Francisco-based firm.


Investing Spree Continues

Binance Labs, the investment and incubator arm of the prominent crypto exchange has added another member to its growing family. The firm has invested $3 million in Koi Trading, an OTC trading desk with operations in San Francisco, Hong Kong, China, and Europe.

The development was reported earlier on Tuesday by accesswire.com.

Koi trading provides a reliable, efficient and compliant over the counter cryptocurrency trading services to institutions and high net worth individuals. The firm also offers support services like quantitative research, data science, and compliance consulting services.

Ella Zhang, Head of Binance Labs, said:

Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner. This aligns with our broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally.

Zhang added:

Koi Trading founders are long-time blockchain believers, with deep knowledge of the technology, OTC operations and regulatory space. Their team is dedicated to making a positive impact and we are excited to welcome them into the Binance Labs family.

Firm Started by Experienced Professionals

The founding team of Koi includes three former core team members of HBUS, the exclusive US strategic partner of Huobi, who bring blockchain industry investment, technology and compliance experience to the company.

Hao Chen, founder and CEO of Koi Trading said:

Our team of experienced traders and sales personnel will join forces to tap into vast networks of counterparties in North America, Asia and the EU, bridging the gap that divides the current OTC landscape.

“We are thrilled that Binance Labs recognizes our team’s unique ability to deliver this vision; we cannot wait to build a reliable and professional brand around the globe in partnership with Binance Labs,” added Chen.

Koi’s Growth Plans

With the infusion of fresh capital from Binance Labs, the company intends to grow their footprint, especially in China. It is reported that despite the ban on cryptocurrency trading in China, daily trading of over RMB 150 million takes place.

Most of the current cryptocurrency trade in China occurs through WeChat, an instant messaging app and without a reliable escrow agent.  Koi intends to serve that segment.

Chen said:

With Koi’s robust AML program, extensive banking relations in the US, investment from Binance Labs, and strong trust amongst counterparties in the Greater China, we aim to be the market nexus that reduces trust and information asymmetry and improves cryptocurrency OTC deal close rate.

With this latest investment, Binance Labs continues its aggressive mission to empower crypto start-ups. Earlier Live Bitcoin News had reported about the firm’s investments into start-ups including eSports and TravelbyBit.

What are your thoughts about this latest investment by Binance Labs? Let us know in the comments below.


Images courtesy of ShutterStock

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