Anchorage Crypto Bank Raises $ 350 Million in Series D Funding

Anchorage Digital, a federally chartered crypto-bank in the United States, has raised $ 350 million in a Series D funding round.

Private equity giant KKR led the round by investing through its Next Generation Technology Growth Fund II. This is KKR’s first direct investment in a crypto firm, Anchorage said. In September, KKR took a stake in the flagship fund of crypto-VC firm ParaFi Capital.

Other investors backing Anchorage’s Series D include Goldman Sachs, BlackRock, PayPal Ventures, Andreessen Horowitz (a16z), Alameda Research, Apollo Credit Funds, GIC (Singapore Sovereign Fund), GoldenTree Asset Management, Wellington Management and the private equity firm Thoma Bravo.

This round brings the total funding of San Francisco-based Anchorage to over $ 485 million to date and its valuation to over $ 3 billion. In February, the company raised $ 80 million in Series C funding, but did not disclose its valuation at the time.

Anchorage hasn’t even spent the funds raised in its Series C cycle, company co-founder Diogo Mónica told The Block. But he lifted the new round to bring bigger financial institutions on board for strategic growth.

“Many of these investors are also clients of Anchorage or are in the process of becoming so,” said Mónica.

At the service of institutions

Anchorage started as a crypto custodian in 2017, serving institutional clients. Over the years, it has evolved into a full-fledged crypto bank, offering lending, borrowing, trading, and staking services.

Earlier this year, Anchorage received conditional approval for its National Banking Charter application from the Office of the Comptroller of the Currency. That conditional approval quickly turned into a full-fledged banking license, with the company meeting certain set conditions, Mónica said.

“We are already fully operational, and have been for over six months now,” he said.

Anchorage’s business has grown “incredibly fast,” Mónica said, as more financial institutions enter the crypto space. He declined to share specific revenue details, but said, “Over the past year, customer growth has been nearly a thousand percent, and revenue has been quite next to it. order of magnitude terms “.

Anchorage serves both crypto and non-crypto businesses, including VCs, hedge funds, fintechs, and companies like Visa.

With new capital on hand, Anchorage plans to further develop its team and expand internationally. The company’s current workforce is around 200, and it plans to double the size of the team over the next 18 months, Mónica said.

Regarding international expansion, Monica said Anchorage wants to create regulated entities around the world, especially in Asia and Europe.

When asked if Anchorage plans to go public, Monica said there are currently no plans to launch an initial public offering or an IPO, but it “might make sense” at some point. given in the future.

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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