New Deal: Tesseract raised $25 million Series A to strengthen institutional digital asset lending offering

Tesseract, the Helsinki-based digital asset lending company, which specializes in bridging institutional capital flows between traditional and digital asset finance, has raised $25 million in one of the largest Series A rounds in Finland to date. The round was led by Augmentum Fintech with other participants including DN Capital, BlackFin Capital Partners, Concentric, Sapphire Ventures and others, and some notable industry participants like Coinbase Ventures, Wintermute, and Woorton.
The company was founded in 2017 and offers margin lending, OTC lending, partnerships with retail trading platforms, and decentralised finance. Tesseract offers a white-label solution for retail trading platforms, exchanges, custodians, fiat on-ramps and and wallet providers, and reports a “one of a kind” margin lending platform in use by hedge funds and market makers.

With institutional investment in digital assets on the rise when compared to traditional finance, the digital side of things is severely underdeveloped – a fact that Tesseract is aiming to change. The firm saw a 20x growth rate year on year and grew the team size almost 7x.

Yichen Wu, CEO and founder of Tesseract, said, “This funding is a significant milestone for Tesseract and one of the largest Series A investments in Finland to date. We are humbled to gain new industry-leading investors in technology, finance, and blockchain whose expertise will add significant value beyond the raised funding. We are extremely happy to see incredible global investor interest in our business in this oversubscribed round.”

“The funding will be aimed towards developing our industry-leading institutional offerings even further, hiring new talent to develop new and existing partnerships, and to boost innovation in new undisclosed financial products. We will also focus on developing our cross-trading venue margin lending platform, which has seen enormous uptake in the past year. Due to the global nature of our fast-moving business, we will also funnel efforts into spearheading our global growth and ensuring regulatory compliance globally.”

Augmentum Fintech, the lead investor, has recognised the potential of the growing market and Tesseract’s unique positioning. Martyn Holman, Partner at Augmentum Fintech, commented on the investment: “We are witnessing wholesale changes in the infrastructure supporting the crypto space as it evolves to the demands of increasing institutional activity. Following the separation of custody and trading in the first waves of evolution, Tesseract is addressing the next fundamental need in a space that has limited leverage capabilities. Yichen, Ilkka and their exceptional team have already grown a strong and profitable foundation with an outstanding product, a clear vision and a voracious will to win. We are all very excited to be joining them on this journey.”

We are excited to join the Tesseract team on their path to transforming the digital asset finance ecosystem, and look forward to the incredible innovation that will be made possible with its innovative technology.