Hong Kong-based XanPool, whose software facilitates faster crypto and fiat settlements, raises a $27M Series A led by Valar Ventures
Context & Ripple Effects
Valar Ventures has made back-to-back Asian crypto-infrastructure bets within a single quarter: after leading Singapore-based Vauld's $25M Series A in July 2021, it now leads Hong Kong's XanPool's $27M Series A for software that speeds up crypto-to-fiat settlements. The round funds stated expansion into Europe and Latin America.
The bet aged quickly: by Q2 2022 XanPool had raised a $41M round at a $400M valuation, roughly 15x the Series A size, while Hong Kong itself became a capital magnet with HashKey's ~$100M raise at a $1.2B+ valuation for its licensed exchange.
First-order effects
- XanPool gains the capital to push its crypto-fiat settlement rails into Europe and Latin America, extending beyond its Hong Kong base.
- Valar Ventures now holds parallel positions in two regional crypto-finance firms — Vauld in Singapore trading/lending, XanPool in settlement infrastructure — concentrating its exposure in Southeast Asian crypto rails.
Second-order effects
- Competing Hong Kong players must match the funding pace: HashKey's subsequent near-$100M Series A shows licensed exchanges and settlement providers racing to capitalize before regional rivals lock up corridors.
- Cross-border payment corridors in Latin America and the Middle East become contested territory, since XanPool explicitly targeted both regions across its successive raises.
Third-order effects
- If the pattern holds, crypto-fiat settlement consolidates around venture-backed infrastructure layers rather than consumer exchanges, with Hong Kong positioned as the regulated hub for both — a structure the HashKey raise reinforces.
- Investor concentration around a few funds (Valar's repeated regional bets) shapes which settlement networks survive, making capital access itself a competitive moat in cross-border payments.
The trend: Venture capital is building Asia-centered crypto-fiat settlement infrastructure faster than licensing regimes can standardize it, with Hong Kong emerging as the funding epicenter.