Citigroup invests in cryptocurrency startup Xalts

Digital asset management firm Xalts based in Hong Kong has received the first investment from venture capitalist group Citigroup Inc.

Citi Ventures served as co-manager for the Xalts initial funding round. The total investment was $6 million, but Citi Ventures did not publicize the amount of its participation in the financing. Investors also included Polygon co-founder Sandeep Neilwal and other managers of hedge funds.

Xalts aims to take advantage of what is an expansion of institutional involvement in the digital asset ecosystem even after cryptocurrency prices fell this year. The firm wants to launch several products related with digital assets, including mutual funds and ETFs registered on global exchanges.

Luis Valdich, managing director of Citi Ventures said in an interview that the macro environment has influenced changes in the world and markets were affected. He added that the company is very cautious about where and how to deposit capital, but remains active in exploiting opportunities both outside and inside of the digital asset space.

Xalts is expanding in several locations, including Dubai, Singapore and New Delhi. It was said by Ashutosh Goel, co-founder and chief investment officer in an interview.