Celsius investment shows conviction in the blockchain, says CDPQ

Canada's second largest pension fund has stated that his first investment in the digital assets sector reflects the conviction that blockchain technology will shake off the financial industry, even if cryptocurrencies are increasingly being subject to regulatory control.

CAISSE de Dépôt et Placement du Québec (CPDQ), the 300-billion dollar pension fund manager in Canada, took part in the leadership of a financing round for Celsius Network on Tuesday with West Cap, the Fonds, founded by the former Airbnb and Blackstone Manager Laurence Tosi Crypto loan allocation platform, which was targeted by state supervisory authorities in the United States who say that it has violated securities laws.

Alexandre Synnett, Executive Vice President and Chief Technology Officer at CDPQ, said that he would expect a participation in Celsius to appear unusual despite the regulatory pressure. "We knew from the beginning of this investment that we would have questions," he said in an interview with the Financial Times.

"The conviction we have refers to blockchain technology," he said. "I think the way in which financial services interact will change positively."

The step of the public pension administrator to join Celsius' $ 400 million-of-own capital procurement, which the company with 3 mrd as a decisive investment option in digital assets.

Synnett warned that the enthusiasm of CDPQ is limited to cryptocurrencies. He said that the fund focuses on "opportunistic" investments in "Diamond in the RAW" company in the early stages that uses blockchain technology, as part of its global engagement in Fintech of $ 40 billion.

"This is a small diversification game. We won't give everything at digital assets," he said, adding that CDPQ would not consider investing money directly in digital assets. "Bitcoin? No, absolutely not," he said.

The support from large investors comes a month after Celsius has been included in a broad US regulatory measure against crypto companies that offer customers returns on deposits of digital assets. State authorities in Texas, New Jersey, Alabama and Kentucky said that Celsius' earnings -on -custody accounts corresponded to a non -registered security offer.

Celsius, founded in 2017, offers its customers interest of up to 17 percent on deposits of cryptocurrencies. The company pays interest in crypto, also in its own token.

Alex Mashinsky, CEO of Celsius, said the FT on Tuesday, he hoped that the fundraising campaign would calm the regulatory authorities with regard to the stability of its crypto loan business and help to open doors on the mainstream financial markets.

Synnett said that CDPQ carefully checked the regulatory pressure as part of its duty of care, but the testing of Celsius reflects a broader uncertainty in relation to the crypto industry.

"We are all ready to work with our partners, even in the USA," he said. "We want to be the good ones"