Cryptocurrency exchange Gemini is partnering with Australian equities manager Holon Investment, to custody a Filecoin (FIL) fund. The US crypto platform is expanding in southeast Asia and seeks to raise $18.4 million (A$25 million) over three months. The company also promised a 100% FIL return to investors over five years.
Gemini will manage the Filecoin fund, which is dubbed ‘Holon’s Wholesale Filecoin Fund.’ The investment company will do this through its regulated custody service, according to a press release. The fund will present unique investment opportunities to investors, without charging a management fee. In addition to this, Eugene Ng, Gemini’s head of business development for Asia Pacific, says there will also be attractive rates of return to investors. Investors will also have access to movements in Filecoin value throughout the duration of the fund.
Details of the Gemini and Holon Filecoin deal
Holon Global Innovations is a subsidiary entirely under Holon Global Investments. The core of the partnership is to create a decentralized cloud data storage business. To achieve this, the fund will buy Filecoin and lend it to Holon Global Innovations to use as collateral. Notably, the Holon group will store and manage its digital assets in a secure and efficient network system provided by Gemini. Over a five-year fixed term, Holon Innovations will pay the fund two Filecoins at maturity for every Filecoin borrowed.
According to Holon, the fund aims to take advantage of the rise in digital data creation. The Sydney-based company says research shows a compound annual growth rate of 23% in that bubble over the next five years. This is more than twice the amount in data creation since the beginning of digital storage.
Gemini’s Southeast Asian Expansion
Since the start of last month, Gemini has been making moves to expand in Southeast Asia to take advantage of growth opportunities there. The US crypto exchange also looks to establish satellite offices in Australia and Hong Kong. This is on the back of its strides in Singapore, where it hired over 30 employees in marketing and compliance roles. In addition, the platform identifies Asia as a hunting ground for growth in crypto and wants to leverage early entry into the market. Therefore, users of the exchange can currently trade in Australian and Hong Kong currency pairs.
Developed by Protocol Labs, Filecoin is the world’s largest decentralized storage network where users can store, request, and transfer data. It has a verifiable platform, and FIL is its native token.
Filecoin launched in August 2017 and raised over $200 million in 30 minutes. The open-source, digital payment system also currently has a total connected decentralized storage of 7.580 EiB. In April 2021, the Filecoin Foundation donated 50,000 Filecoins worth $10,000,000 to the Internet Archive.