Philippine Digital Asset Exchange (PDAX), a cryptocurrency exchange, has announced raising $12.5 million in a funding round backed by a UK-based venture capital firm and joined by Hong Kong-listed fintech company BC Group.
Existing investors Beenext Ventures, CMT Digital, Ripple, and Aboitiz-led fintech company UBX also participated in the funding round, which will support the improvement of PDAX’s products and services and expand Bonds.ph.
Bonds.ph is the country’s first mobile application that allows small investors to buy government securities with their smartphones. It was launched in 2020 by UnionBank of the Philippines in partnership with PDAX.
“A substantial portion of this funding will go to Bonds.ph to expand our capabilities there, to invest in the platform and make sure that it can continue to grow and service the bond market,” PDAX founder and CEO Nichel Gaba said at a press briefing.
Gaba told DealStreetAsia that the latest funding was a growth funding round.
PDAX, founded in 2017 and licensed by the country’s central bank, allows Filipinos to buy and sell bitcoin and other digital coins. It is similar to other web-based brokerages for stocks and other securities, but specialising in cryptocurrency.
Traders and investors on PDAX, which has about 500,000 users, are able to buy fractional coins. These are partial pieces of any cryptocurrency such as bitcoin for those who can’t afford to buy a whole coin.
The funding comes as the Philippines is considered as one of the most active countries in the cryptocurrency space, trailing only Nigeria and Vietnam in terms of crypto usage.
“We believe that PDAX will be an indispensable part of furthering crypto adoption in the Philippines and helping Filipinos benefit from the future of finance,” Gaba said.
PDAX most recently added new tradeable tokens to its platform. These include Aave, Uni, Enjin, Compound, Basic Attention Token, Chainlink, and GRT. Gaba said the exchange will add more tokens to the platform in the future.