Celsius Network is the latest in a long line of cryptocurrency companies to announce a massive raise this year.
Celsius, a lending firm, has reached a $3 billion valuation.
Celsius announced in a press release on Tuesday that it had closed a $400 million investment round. The round, led by WestCap and the Caisse de dépôt et placement du Québec (CDPQ), values the company at $3 billion.
The firm stated that it intends to use the newly raised capital to expand product offerings, launch new institutional-grade products, and more than double its employee count.
Along with BlockFi, Celsius is one of the largest centralized lending firms in cryptocurrency. Since its inception in 2017, Celsius has processed $25 billion in total assets and paid out $850 million in interest through its flagship product, Earn.
When discussing the investment, Celsius CEO Alex Mashinsky stated that the project’s goal would be to expand its operations in traditional capital markets. He continued, saying:
“The collaboration with WestCap and CDPQ positions Celsius to grow and advance its mission of leveraging blockchain technology to connect and decentralize traditional finance.”
Users who deposit cryptocurrencies on Celsius earn an APY of more than 8.8 percent on stablecoins like USDT and 3.51 percent on Bitcoin. With the start of the DeFi boom in 2020, the company has faced stiff competition from decentralized lending platforms such as Aave and Compound.
It has also had its share of regulatory issues. In September, regulators in Texas, New Jersey, and Alabama barred Celsius from offering lending accounts, claiming that the company was selling unregistered securities. Last month, Coinbase faced a similar fate when the SEC threatened to sue the exchange over its own Lend product.
Celsius previously received a $1 billion loan from Tether Holdings, the controversial issuer of USDT.