UK investment app Moneybox raises $ 46 million for crypto products

UK investment app Moneybox raises $ 46 million for crypto products - moneybox finally launches pensions a year after first teasing it with 100000 waitlistDigital wealth manager Moneybox has announced the success of a Series D funding round by wealth manager Fidelity. The £ 35 million (approximately $ 46 million) will allow the London firm to scale its operations and launch new cryptocurrency investment products.

Fidelity International Strategic Ventures previously backed the company with investments in its 2018 Series B round. Polar Capital has also joined the current round for Moneybox, which has nearly $ 3,9 billion in assets under management, according to relationships.

Investing in cryptocurrencies, not speculation

Moneybox was launched in 2016 to help people invest with their small change. The app has grown dramatically, offering retirement planning, property buying, and stock investing, and now has more than 800.000 users.

Co-founder and co-CEO Ben Stanway is confident cryptocurrency is the next direction for the company. Speaking to Altfi, he said the company can now meet the "mass market social need to have wealth planning, savings and services at their disposal." He explained that the app will not offer cryptocurrency trading, but will focus on portfolio diversification.

"We will expand [into cryptocurrencies] through the lens of diversification, not through the lens of speculation."

He added an example by suggesting to keep "a couple of percent" in Bitcoin (quotation BTC) as part of a larger portfolio, reiterating that "We won't be a good place for people to speculate on cryptocurrencies."

Stanway said cryptocurrency investment plans are still in the early stages of development, adding that there will likely be "just Bitcoin, or maybe Bitcoin and maybe one or two others," to begin with.

The company's long-term goal is to offer financial planning services to 15-20 million Britons who could benefit from such planning.

British regulators tighten the leash

The move comes under an increasingly gloomy sky for cryptocurrency regulation in the UK. The Bank of England and financial regulators have taken a tough stance towards cryptocurrencies and plan to further restrict and regulate businesses in the sector.

As a result, many UK companies are already looking for friendlier jurisdictions in Europe, such as Switzerland and Croatia. Industry experts have warned of a potential exodus of talent and innovation from the country.

Last week, the Financial Conduct Authority (FCA) extended the deadline for the registration of cryptocurrency businesses for 12 companies, but it has since moved on for the others.