A digital currency exchange and custodian, Rain secured an amount of $6 million from Coinbase. Rain Financial Inc. mostly operates in North Africa and Middle East countries.
Rain said in a statement that the funding was led by Middle East Venture Partners (MEVP) which is an investment firm. Jameel Investment Management Co, Vision Ventures private equity investor of Saudi Arabian, Fintech Fund a Dubai based DIFC also participated. Rain Financial Inc. however, did not disclose any valuations.
Rain Financial was the first platform in the Middle East to obtain a license for crypto trade. It started roughly around four years ago and got its license approved in 2019 from the Central Bank of Bahrain.
The business of Crypto exchanges and platforms boom at the end of 2020 with the rise in the value of Bitcoin. As we know that Bitcoin’s price surged four-folds before the end of 2020.
Last year a lot of new users joined in the crypto trade world. On top of that, the transaction volumes by the old users also increased many times said YehiaBadawy. He also said that there has been a huge growth in the retail, high net-worth individuals, and institutional investors. He further added that the trend in the crypto trade has increased all over the world.
There has also been news of retail investors coming back to the crypto trade industry. The retail investors would be making a return after approximately three and a half years, in the crypto industry. The retail investors were behind the bull run in the crypto industry in 2017. However, the retail investors then cashed out their profits and exited the crypto market. Currently, due to the rising interest of financial institutions, crypto values have skyrocketed. The retail investors are looking to benefit from and don’t want to be left out of the current boom.
The investors of the middle east have some understanding of the crypto industry and are therefore investing. Other elements of shifting interest could be the devaluation of the dollar which is expected to go further down during the pandemic. Most of the middle east business firms hold their funds in US$. To secure their losses because of the market condition of US$, the middle east businesses could be investing in crypto.