Hex Trust, a leading Asian crypto custodian supported by Animoca, is focused on achieving profitability and securing additional funding in the midst of the ongoing crypto market recovery. The Hong Kong-based custodian is gearing up to initiate discussions regarding raising more funds later this year, as the crypto market shows signs of a potential sustained upswing.

In a recent interview with the South China Morning Post, Hex Trust’s co-founder and CEO, Alessio Quaglini, revealed plans to explore a new funding round structure in the coming months. While the exact timing of this initiative is yet to be determined, Quaglini emphasized the increasing trading volumes and growing appetite for risky assets in the market.

Established in 2017, Hex Trust anticipates achieving profitability this year after implementing cost-saving measures in 2023. However, the custodian faces challenges in reaching profitability, especially in light of the proposed regulatory framework in Hong Kong. The new regulations require licensed centralized crypto exchanges to develop and operate their own custody solutions, potentially impacting third-party custodian services like those provided by Hex Trust.

Quaglini expressed concerns about the potential regulation of over-the-counter (OTC) services, as Hex Trust operates a significant OTC business in Hong Kong. Restrictions on crypto-to-crypto trades via OTC platforms could prompt the custodian to consider relocating to more crypto-friendly jurisdictions.

According to data from Crunchbase, Hex Trust has raised a total of $104 million from 37 investors, including prominent names like Ripple and Liberty City Ventures, in addition to Animoca Brands. The custodian saw its valuation soar to $300 million following a successful Series B funding round in March 2022.

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