Narayan AmmachchiCayman Islands-based fintech Ether.fi closed a US$23 million funding round, attracting investment from industry heavyweights like Bullish Capital and CoinFund.
This marks Ether.fi’s second fundraising effort. The company previously secured US$4 million.
A broker on the Ethereum network, Ether’s total value locked (TVL) –a metric indicating the value of crypto assets deposited in its platform– surged a staggering 5,800% since the beginning of 2024, reaching a current value of US$1.77 billion.
“Ether.fi represents the future of crypto asset management,” said Alex Felix, Chief Investment Officer of CoinFund. “As an on-chain DeFi solution, the protocol bridges the gap between technological advancements promoting decentralization on the Ethereum blockchain and maximizing value for ETH holders.”
The Cayman Islands, known for its relaxed financial regulations, has become a hotspot for virtual asset management (VAM) service providers, particularly cryptocurrency exchanges. Ether.fi joins the likes of Ledn, RYKI and Mauve, alongside established exchanges Blockchain.com and Crypto.com.
To attract VAM companies, the Cayman Islands government offers a helping hand through Tech Cayman. This agency acts as an investment promotion agency, assisting businesses seeking a physical presence on the island. Additionally, many of these crypto companies are drawn to Enterprise City, a free economic zone that offers potential tax benefits.
Despite the influx of foreign investment, the Cayman Islands faces challenges in developing a large enough domestic tech talent pool to support this growth. According to local news outlet Cayman Compass, most of the crypto firms are hiring employees from abroad.
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