Binance Makes Strategic Investment in Crypto Fund Multicoin Capital

​Cryptocurrency exchange Binance is joining the ranks of Ribbit Capital, Union Square Ventures and Marc Andreessen as backers of Multicoin Capital, a cryptocurrency investment firm based in Austin, Texas. 

With the deal, Binance has now become a limited partner of the hedge fund. It's the first such investment for Binance. The amount of the investment was not disclosed.

Multicoin is a hedge fund that invests in crypto startups. One of its notable investments was in Singapore-based crypto startup, MathWallet, in which it joined Binance Labs, the incubation and seed funding arm of Binance. 

Binance has worked with Multicoin Capital on several occasions, mainly to identify, incubate, and invest in several early-stage blockchain projects. With this new investment, Binance affirms its conviction in Multicoin's process and expertise as fund managers.

The fund Binance injected will be used to expand Multicoin's operations including doubling down on its headcount with the addition of new business roles.

"Multicoin Capital has a strong track record and a unique knowledge of emerging assets that extend well beyond Bitcoin," said Binance CEO Changpeng Zhao in a statement. "They are the best at what they do, and we are glad to join them as limited partners. We look forward to working more closely together in the broader industry."

"We have invested thousands of hours researching Binance and can say unequivocally that it is one of the most strategically important infrastructure providers in the blockchain ecosystem," said Tushar Jain, Managing Partner, Multicoin Capital. "We are proud to welcome Binance into our group of limited partners. This investment represents a major vote of confidence for our firm and a significant responsibility that we are prepared to take on."

About Binance

Binance, the world's leading crypto exchange and blockchain company, is trusted by millions worldwide. The Binance platform features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. 

Amid the recent crypto frenzy, Binance Coin (BNB), a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange, has most of the time remained one of the top-performing digital assets on a daily basis.

About Multicoin Capital 

Multicoin Capital is an Austin-based venture capital company that invests in crypto tokens and also gives investors a regulated exposure to blockchain industry. Most recently, the fund had reportedly accumulated a large position in RUNE, the native token of a decentralized cross-chain automated market maker.

The company was established in 2017, then two years later it raised its first funding that ended with a value of $75 million.