Newton Crypto now valued at $253 million following $25 million CAD Series B round

Tiny Capital, Shopify co-founder Tobias Lütke’s Snowdevil Capital helped fuel the financing.

Toronto-based Newton Crypto has closed a $25 million CAD ($20 million USD) Series B funding round led by DV Chain. Other investors include Singh Capital Partners, Anthony Pompliano, Tiny Capital, and Shopify co-founder Tobias Lütke’s Snowdevil Capital. Asset and wealth management firm CI Financial.

The new round brings the company’s valuation to approximately $253 million CAD ($200 million USD).

Launched in 2018 by co-founders Dustin Walper, Erynn Saunders, and Tyson Leslie, Newton operates a cryptocurrency asset trading platform designed to be low-cost for Canadians. It enables users to buy and sell crypto from a list of over 60 crypto assets, as well as make withdrawals and deposits.

The startup paused the transactions made on its platform last April as it addressed an outage related to a cyberattack affecting its custodial partner.

Newton works with Toronto company Balance as its custodian, with its partnership dating back to 2019. According to Newton, it stores the vast majority of its crypto in secure locations with no access to the internet.

RELATED: Newton announces partnership meant to prevent the next QuadrigaCX scandal

Funded with new capital, Newton intends to further develop its technology, expand its workforce in all areas of the company, grow its marketing and distribution channels, and use it for general working capital purposes.

Newton said its largest investor is DVX Capital Markets, parent to DV Chain and broker-dealer ITG, regulated by the Investment Industry Regulatory Organization of Canada. In August 2018, the crypto startup received a conditional commitment of $15 million from DV Chain.

The company noted that it has filed an application for registration as a restricted dealer with the Ontario Securities Commission and the security regulatory authorities in all other provinces and territories in Canada.

Canada’s list of crypto trading platforms to receive regulatory approval is steadily increasing. CoinSmart Financial Inc. was granted status as a marketplace in December and claims to be the first Canadian exchange to be regulated by the Financial Transactions and Report Analysis Centre of Canada.

CoinSmart’s regulatory approval came three weeks after Bitbuy, which was recently acquired by WonderFi for approximately $206 million in cash and shares.

Featured image courtesy Newton Crypto

.

Author: wpadmin

Leave a Reply

Your email address will not be published.