Cabital, a digital assets institution, announced today that it has raised $4 million in its seed funding round. Previously, Cabital has raised $3 million in an angel round of funding. Cabital’s successful seed round was led by SIG, Dragonfly, and GSR, increasing the firm’s valuation to $40 million. The funding will support Cabital’s growth ambitions in Europe, help onboard senior talent and further develop its proprietary digital wealth management platform.
To capture the immense opportunities across Europe, Cabital will add SEPA to its list of payment methods, allowing customers to seamlessly move between euros and crypto by the end of Q3. While some firms require up to €1,000 as a minimum deposit and only allow users to buy cryptocurrencies with euro, Cabital won’t require a minimum and maximum deposit amount and will allow its customers to make deposits in euro, as well as withdraw their earnings in euro.
This will enable customers in the European Union to on-ramp with EUR into digital assets and off-ramp with cryptocurrencies into EUR, making Cabital not only a trusted on-and-off ramp solution but also the digital wealth management platform of choice for Europeans.
Cabital does not issue any native tokens and thus our customers avoid any hidden fees associated with staking platform tokens, as well as they avoid market volatility risks. Still, Cabital offers up to 12% APY on savings in cryptocurrencies by sharing up to 80% of their investment income with customers.
Raymond Hsu, Co-founder and Chief Executive Officer, said:
“Today, Cabital crossed an important milestone in our journey to build an alternative and safe financial industry.
“Our purpose is to simplify investing in the crypto world for everyday investors, with a product that’s simple, secure, and sensible. Regardless of whether you’re a new or an experienced investor, we help you get more out of your digital assets to get you closer to your life goals sooner.
“Cabital’s successful seed round is a testament that we are in the right business, with the right product and the right strategy, and we will continue to deliver on our promise of helping more people across the world reach their financial goals.”
Lu Guo, SIG’s Partner, said:
“We’ve decided to lead Cabital’s seed round of funding as we see a massive surge in crypto investment. As cryptocurrency is now coming into the mainstream, Cabital is proposing new investment opportunities for crypto-wealth management products, which will meet regulatory compliance standards while maintaining strong leadership in this growing market that’s increasingly globalized.”
The company’s main product is Cabital Earn, a cryptocurrency wealth management platform that enables customers to acquire higher returns on their investments in cryptocurrencies of up to 12% APY. Customers can subscribe to flexible and fixed-term savings plans in USDT, BTC, and ETH.
Cabital removes the complexity of the user directly participating in DeFi, where users have to constantly track and move their assets across different initiatives (while being wary of scams and fraud) to maximise their returns. Instead, the customer just has to put their crypto assets with Cabital, and Cabital lends these assets to major DeFi platforms with well-established TVL (total value locked) and extensive audit history, such as AAVE and Curve.
At the same time, Cabital ensures the lowest risks possible through multilateral analysis of all available investment options combined with additional checks by experienced investors, lawyers, engineers, and financial analysts who’ve worked with major banks and tech companies. Cabital proceeds with investing only when a project passes all quantitative and qualitative tests and gets approval from the expert team. Thanks to that, Cabital can combine the high yield of crypto with low risks and efficient strategies associated with major financial institutions.
By the end of Q3, the company will add SEPA to their list of payment methods, allowing customers to seamlessly move between euros and crypto. While some firms in the space require up to €1,000 as a minimum deposit and only allow users to buy cryptocurrencies with euro, Cabital won’t require a minimum and maximum deposit amount and will allow our customers to make deposits in euro, as well as withdraw their earnings in euro.