Despite the ongoing crypto winter, there has been a growing appetite among institutional investors for crypto-related investments, particularly infrastructure and services that make access to crypto investments more efficient and robust.
The latest announcement in the space is that Citi Ventures is among the investors that have participated in the seed round for Hong Kong based xalts, which also includes private equity firm Accel and AGBuild, the web3 VC investment arm of quant trading firm AlphaGrep, according to an announcement.
Founded by ex-HSBC trader Ashutosh Goel and Supreet Kaur, a former executive at Meta Asia, the investment management and technology firm helps traditional finance institutions to take part in the digital asset ecosystem.
“There is a lot of pent-up demand from institutional investors to participate in the digital asset class. However, a lot of institutions we are speaking with are not able to access this ecosystem directly. Our products and solutions bridge this gap without compromising the high standards of safety and compliance expected by institutional investors,” Kaur told The Economic Times.
Going forward, xalts said it plans to launch a number of digital asset-related fund products, such as mutual funds and ETFs that will be traded on several global exchanges.
As panelists at the recent Token 2049 and Milken Institute Asia conferences have said, building institutional-grade digital asset products might is key for broader adoption by traditional finance institutions – watch this space.