The institution-focused digital asset management firm also develops proprietary investment products, platforms and solutions for global institutions
Citi Ventures and venture capital firm Accel announced an investment of $6 million in xalts, the company said in a release on Friday. Founded by former HSBC and Meta executives in 2022, xalts is a global investment management and technology firm.
The institution-focused digital asset management firm also develops proprietary investment products, platforms and solutions for global institutions.
Ashutosh Goel, the chief investment officer at xalts, said, “With xalts, we are building innovative, institutional-grade investment products and solutions which focus on high compliance and control standards—things institutional investors care about.”
With this investment, xalts plans to develop fund-based products, including mutual funds or exchange-traded funds listed on global exchanges linked to digital assets.
xalts has also raised funds from Polygon Co-founder Sandeep Nailwal and hedge fund managers. Moreover, the company is looking forward to leveraging its technology platform to collaborate with asset management firms and staking infrastructure providers.
As per the release, xalts is also developing a structured product and repackaging platform enabling institutions to issue structured notes with embedded crypto options while collaborating with firms operating in the ecosystem.
Supreet Kaur, the Co-founder at xalts, said, “Apart from investors, we are also seeing a lot of interest from fund managers and issuers to use our platform to launch structured and fund products for their clients.”
Discussing the company’s long-term goals, Kaur further said that the firm is expecting to build a team of 30 by the end of this year across the company’s offices based out of Hong Kong, Singapore, Dubai and Geneva.
While this is Citi Ventures’ first such investment, Abhinav Chaturvedi from Accel sees positive growth in the institutional adoption of digital assets. Apart from its investments in the financial sector, venture capital firm Accel remains committed to funding players as an early-stage investor.