Oct 21, 2024

By PETALING JAYA (Oct 21): Hata Digital Sdn Bhd, the fifth licensed digital asset exchange (DAX), raised US$4.2 million (RM18.07 million) in seed fundraise to expand into new products and acquire users in the Asia region. The lead investors are US-based venture capital firm Castle Island Ventures (Castle Island) and Cadenza Venture (Cadenza). Other participating investors are global crypto exchange Bybit, Singapore-based diversified investment firm AP Capital, American venture capital firm Plug and Play Tech Center and crypto accelerator Alliance.xyz. “We are thrilled to have the backing of such esteemed institutional investors. With their support and our innovative offerings, we are committed to creating a robust platform that empowers users in Malaysia and Asia to navigate the digital asset market with confidence,” said Hata’s CEO David Low. Castle Island is a digital asset firm founded by Nic Carter and Matt Walsh, alumni of US-based financial services corporation Fidelity Investments. It primarily invests in start-ups in the monetary network, financial services and internet architect space, including Web 3 companies. It is also an early investor in Pintu, Indonesia’s third largest cryptocurrency exchange. “Malaysia and the broader Southeast Asia region is the global epicentre of crypto adoption, and we are excited to support the talented team at Hata in their support of this market. We believe Hata is well-positioned to win [the competition] due to their differentiated product focus and regulatory approach,” said Carter, founding partner of Castle Island Ventures. Meanwhile, Cadenza is led managing partners Kumar Dandapani, formerly data science head at Norwest Venture Partners and Max Shapiro of Blue Line Advisors. According to its official website, Norwest Venture Partners is a global venture and growth equity investment firm with over US$15.5 billion in capital while Blue Line Advisors is a US-based investment advisory firm. With a focus on decentralised technologies, Cadenza Ventures raised a US$50 million crypto venture fund to invest in early-stage digital finance and blockchain technology companies in 2021. It invested in seed and series A funding rounds of crypto companies, including CoinDCX, one of the largest cryptocurrency exchanges in India and Valr, another cryptocurrency exchange in South Africa. “We believe that Hata’s innovative approach and commitment to user engagement will drive the next wave of growth in Malaysia’s digital asset market. We are looking forward to working closely with the team as they navigate this evolving landscape,” said Cadenza’s Shapiro. Hata previously secured RM3 million in pre-seed funding from a group of angel investors who are involved in the financial technology (fintech) community, including 1337 Ventures and Raja Hamzah. Most Read