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Melbourne-based blockchain financial infrastructure firm CloudTech Group has raised $14 million in a Series A round, the bulk of which has been funded with cryptocurrency in one of the largest raises of its kind for Australia.
CloudTech has secured $3 million in cash from the raise with the $11 million balance comprising a mix of Bitcoin and USDT, the latter created by Tether as a digital currency pegged to the US dollar.
The capital raise, which was backed by six undisclosed individual and institutional investors, is described by CloudTech as one of Australia’s largest crypto-denominated capital raises to date and signals the growing maturity of digital assets as a funding tool for long-term infrastructure plays.
The fresh capital will be used by the company to launch CloudTech Custody, an institutional-grade custody solution for digital assets, and to expand the company’s broader “crypto-native financial ecosystem”.
Founded in 2021 by fintech entrepreneur Kevin Chen, CloudTech delivers a suite of digital finance services comprising over-the-counter (OTC) trading, stablecoin solutions, and CobWeb Pay, a proprietary platform bridging fiat and digital payments.
The launch of CloudTech Custody marks the next phase in the company’s plans to build a fully integrated platform tailored for professional investors, digital-native businesses and financial institutions entering the decentralised economy.
“This raise marks a major step forward in delivering core infrastructure for the digital asset economy,” says Mandy Jiang, CFO and executive director of CloudTech Group.
“Custody is critical for institutions entering this space, and we’re building a solution that combines blockchain’s strengths with the standards and safeguards expected in traditional finance.”
CloudTech says blockchain-based custody is essential to the institutionalisation of digital assets.
“As crypto evolves, so does the need for secure, accessible asset storage,” says the company.
“Our custody solution removes the technical burden of self-custody while giving users full control. Managing digital assets has never been simpler or safer.”
The CloudTech Custody platform will offer segregated wallets, end-to-end encryption and transparent reporting, ensuring that the company says will allow institutional clients to hold and manage digital assets “with confidence”.
“We’re applying the disciplines of traditional finance to the blockchain space, not just in technology, but in governance, transparency and control,” says Jiang.
“Our ecosystem is designed to meet the needs of institutions looking for more than just access; they’re looking for infrastructure they can trust.”
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