CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Canada’s Caisse part of $400m Celsius fundraising round

By Robert Davis

21:30, 14 October 2021

Jar with money
Jar with money – Photo: Shutterstock

Canada’s second-largest pension fund contributed to a $400m fundraising round for Celsius Network, a blockchain-based banking platform.

Caisse de dépôt et placement du Québec (CDPQ) invested in Celsius alongside private equity firm WestCap Group, which has also launched technology companies like Airbnb and Klarna. The investment reflects a total valuation of more than $3bn for Celsius.

“Blockchain technology has the potential to disrupt several sectors of the traditional economy,” Alexandre Synnett, executive vice president and chief technology officer at CDPQ, said in a statement. “As digital assets grow in adoption, we intend to capture the right opportunities, while working with our partners towards a regulated industry.”

About Celsius Network

Celsius separates itself from traditional banks by offering its customers compounding yield services and instant low-cost loans through its mobile and web-based platforms. Customers can transfer their cryptocurrency to Celsius in exchange for cash loans. Users can also loan their coins among each other for up to 9% annual interest, according to its white paper.

However, the Hoboken, New Jersey-based company has also been accused of malfeasance by several US states, according to reports from Bloomberg. Regulators in Texas, New Jersey, and Kentucky have all sent the company cease-and-desist letters for selling securities that are not licensed.

Alex Mashinsky, CEO of Celsius, told the Financial Times that he hopes the fundraising round will reassure regulators that the company is legitimate.  

“It’s not the $400m. It’s the credibility that comes with the people who wrote those cheques,” Mashinsky said.

BTC/USD

89,687.30 Price
+0.800% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

DOGE/USD

0.39 Price
+2.000% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

XRP/USD

0.69 Price
+0.730% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

SOL/USD

217.65 Price
+2.700% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 2.2652

Capital.com reached out to Celsius to confirm Mashinsky’s quote but did not receive an immediate response.

Growing network

Despite the regulatory concerns, Celsius has seen its network grow considerably since launching in 2017.

As of 8 October, the company said it holds $25bn in total assets with more than one million users on its platform. It has also paid out more than $850m in interest payments over the last three years.

It was this impressive growth that initially attracted WestCap and CDPQ to the investment, according to Laurence Tosi, WestCap’s founder.

“While the current regulatory attention is new, Alex Mashinsky and Celsius' ethos has long echoed the sentiment regulators are trying to put forth in terms of consumer protections,” Tosi said in a press release. “Celsius is committed to working constructively with regulators to better understand the dynamic crypto space, protect retail customers from fraud and undue risk, and create general consumer knowledge to allow for thoughtful investment decisions.”

Related topics

Rate this article

Related reading

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading