GIC Bets on Digital Assets
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The blue chip-focused Singapore sovereign wealth fund has invested in a crypto bank, in a signal that digital assets are here to stay.
In an announcement on its blog last week, U.S.-based digital asset bank Anchorage said it raised $80 million in a Series C funding round led by GIC.
Joining the sovereign wealth fund were U.S. venture capital firms Andreessen Horowitz, Blockchain Capital, and Lux, as well as Portuguese fund Indico.
Anchorage said the new capital will allow it to «rapidly scale to meet the rising demand for participation in the digital asset space, particularly among corporations and traditional financial institutions.»
It also said that it wants to be a crypto partner to neo banks, challenger banks, and traditional banks, and make institutional decentralized finance (DeFi) participation accessible.
In 2018, GIC was among investors who raised $300 million for Coinbase, a digital currency exchange headquartered in San Francisco, California.
The news came as a surprise as CEO Lim Chow Kiat previously said that GIC would avoid crypto-related investments as it goes against GIC’s investment mandate, which is «to preserve and enhance the international purchasing power of Singapore’s financial reserves.»
Questions & Answers
Q.What is Anchorage's plan for the new capital it has raised?
What is Anchorage's plan for the new capital it has raised?
Anchorage intends to rapidly scale its operations to meet increasing demand for digital asset participation. It also aims to become a crypto partner for various banks and facilitate institutional DeFi involvement.
Q.Which other investors joined GIC in this funding round for Anchorage?
Which other investors joined GIC in this funding round for Anchorage?
U.S. Venture capital firms Andreessen Horowitz, Blockchain Capital, and Lux participated in the Series C funding. Portuguese fund Indico also joined the investment round alongside GIC.
Q.How does this investment align with GIC's previously stated position on crypto assets?
How does this investment align with GIC's previously stated position on crypto assets?
This investment surprises some, as GIC's CEO previously stated the fund would avoid crypto-related investments. He indicated such investments might go against GIC’s mandate to preserve Singapore’s financial reserves.
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