Tesseract Investment, a Finnish diversified financial services and investment management innovator in digital assets, reached profitability in 2020, buoyed by rapidly increasing investor and borrower interest across all key operational areas. Institutional interest in digital asset backed lending products was especially strong from H2 2020 onwards.
Digital asset lending saw tremendous growth during the year, with overwhelming customer demand in both borrowing and lending. Demand for BTC was especially strong and loan originations increased more than 40 times compared to that of 2019. As part of its growth strategy, Tesseract announced a set of significant partnerships during the year, including a partnership with UK-regulated digital asset infrastructure company Copper and with Finnish fiat on/off ramp Coinmotion.
Decentralized finance was announced by Tesseract as a new operational area in Q2 2020. The Tesseract DeFi team, a pioneer in the European asset management segment, is actively engaging with the new paradigm. While still a relatively small business area in comparison to technology solutions & digital asset lending, Tesseract saw immense investor interest to deploy capital into DeFi especially during the last quarter of the fiscal year. Tesseract believes 2021 to be the year where DeFi becomes a core growth driver for the company.
Yichen Wu, CEO & Founder of Tesseract, commented: “This was the year we truly took off as a company. Hard work done by the whole team during the turbulent periods since the crypto winter of 2018, combined with some astute investments we made in the technology platform in the past three years truly paid off for us in 2020. I’m especially proud of the fact that we managed to become a profitable company while experiencing a period of hyper growth, in terms of assets under management as well as both top line and bottom line. I’d like to take the opportunity to thank our partners as well as the whole Tesseract team – the great success of 2020 was a true team effort in every meaning of the sentence. Throughout the years Tesseract has grown to be a thought leader in the digital asset space and we continue to see amazing opportunities to grow in 2021 as well. This year will be even better“
Jorma Alanne, Managing Director at Taaleri Investment, and one of the earliest investors of Tesseract commented “We’re extremely satisfied with the great performance exhibited by Tesseract during 2020. Yichen and his team have made us very happy.”
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Tesseract Group Oy is regulated by the Finnish Financial Supervisory Authority (FIN-FSA) as a virtual currency service provider.
