Hex Trust, a leading Asian crypto custodian backed by Animoca, is focused on achieving profitability as it navigates the current recovery in the crypto market.
Based in Hong Kong, Hex Trust is gearing up to explore opportunities for additional funding later this year, as signs point to a potential sustained rally in the crypto market. Co-founder and CEO Alessio Quaglini revealed in an interview with the South China Morning Post that the custodian is considering initiating discussions for a new funding round, although the timing is still under consideration due to investor caution.
Established in 2017, Hex Trust is optimistic about reaching profitability this year after implementing cost-saving measures in 2023. However, challenges lie ahead, especially with the proposed regulatory framework in Hong Kong. The new regulations require licensed centralized crypto exchanges to develop and manage their own custody solutions, which could impact third-party custodians like Hex Trust.
Despite these challenges, Quaglini is particularly concerned about the potential regulation of over-the-counter (OTC) services, an area where Hex Trust has a significant presence in Hong Kong. The government’s proposal to restrict crypto-to-crypto trades via OTC platforms without a crypto exchange license may prompt Hex Trust to consider relocating to more crypto-friendly jurisdictions.
According to data from Crunchbase, Hex Trust has raised $104 million from 37 investors, including prominent names like Animoca Brands, Ripple, and Liberty City Ventures. The custodian’s valuation soared to $300 million after its successful Series B funding round in March 2022.
In the midst of changing priorities and regulatory challenges, Hex Trust is navigating the evolving landscape of the crypto market with a strategic focus on profitability and growth.