A16z crypto, a venture fund of Silicon Valley giant Andreessen Horowitz that invests in cryptocurrency startups, has announced its intention to expand its reach in Asia with a new office in Seoul. Following the completion of this office, the venture capital fund mentioned that it will hire Sungmo Park to lead operations there.
This move prompted reports to reach out to A16z crypto for comment on the topic of discussion. When asked why it has chosen to expand its presence in Asia, particularly Seoul, the Andreessen Horowitz unit shared a blog post noting that South Korea has secured the top position as the second-largest crypto market worldwide.
A16z crypto also unveiled that the new office seeks to partner with founders by establishing collaborations, improving distribution networks and enhancing community growth across the Asian country.
A16z crypto eyes Asia for expansion
Following the venture capital fund’s decision to expand its presence in Asia, A16z crypto highlighted the high levels of crypto ownership in South Korea and the increasing on-chain activities in Japan.
At this point, analysts weighed in on the situation. They acknowledged that South Korea has positioned itself as a hub for cryptocurrency innovation, while Hong Kong and Singapore have long served as the continent’s financial centres.
On the other hand, sources familiar with A16z crypto’s recent move claimed that the Andreessen Horowitz unit preferred Seoul for its expansion because it aimed to establish close ties with a major global city where real development takes place, rather than just concentrating on banking or regulations.
In the meantime, reports indicate that South Korea has one of the most enthusiastic crypto communities globally, with leading exchanges such as Upbit. These cryptocurrency exchanges are renowned for their high trading volumes.
Another significant finding reported by the notes was that the developer ecosystem in the country is firm, resilient, and centred on product development. Sources also cited an earlier statement from the fund alleging that about one-third of South Korean adults possess cryptocurrency.
As debates concerning A16z crypto’s plan to expand in Asia heated up, it was confirmed that Park, who was the former APAC Lead at the Monad Foundation, will back both new startups and established firms.
He will also apply his expertise from Monad Foundation and Polygon Labs, where he engaged in market strategies and ecosystem growth throughout East Asia, Greater China, Southeast Asia, and India.
A16z-backed bank shifts its focus towards fintechs and crypto firms
Meanwhile, earlier this week, Loop Crypto announced its partnership with Lead Bank, a bank backed by A16z. The company mentioned that this collaboration aims to capitalise on the anticipated growth of stablecoins.
In a blog post, the co-founder and CEO of Loop Crypto, Eleni Steinman, stated that, “We’re excited to team up with Lead to expand our efforts in stablecoin and crypto payments, creating a bigger impact and reach for technology that can enhance the speed, efficiency, and security of our financial system.”
Notably, Lead Bank has been in existence for 97 years but has only recently developed a growing interest in fintechs and cryptocurrency firms. Additionally, it is mainly located in Kansas City, Missouri (USA).
This shift in focus occurred after a team of leaders in the tech industry, led by Jackie Reses, acquired Lead Bank in 2022. Earlier this year, the company gained $70 million in its Series B funding round. This amount increased its valuation to around $1.47 billion.
Some of the prominent investors in Lead Bank include Andreessen Horowitz (a16z), ICONIQ, Greycroft, Ribbit Capital, Coatue, Khosla Ventures, and Zeev Ventures.
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