Hex Trust, a custodian, seeks additional funding in response to growing interest in cryptocurrency.

Hex Trust, a crypto custodian based in Hong Kong, is looking to raise additional funds later this year as the crypto market shows signs of a sustained rally. In an interview with the South China Morning Post, Hex Trust CEO Alessio Quaglini stated that the custodian plans to begin discussions about a new funding round, although the timing is yet to be determined. Despite the potential for profitability in the current year, Hex Trust faces challenges due to proposed regulations in Hong Kong. These regulations require licensed centralized crypto exchanges to develop and operate their own custody solutions, which could impact third-party custodian services like Hex Trust. Quaglini is particularly concerned about the proposed regulation of over-the-counter (OTC) services, as Hex Trust has a significant OTC business in Hong Kong. If restrictions are imposed on crypto-to-crypto trades via OTC platforms, Hex Trust may consider relocating to more crypto-friendly jurisdictions. Hex Trust has raised $104 million from 37 investors, including Animoca Brands, Ripple, and Liberty City Ventures, and its valuation reached $300 million after its Series B funding round in March 2022.