GSR to Invest USD270m in Blockchain startup tZero

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In December, GSR Capital is planning to invest USD270m in blockchain startup tZero, a subsidiary of the US based e-commerce retailer, according to Forbes on August 9. With the proceeds, tZero will launch multiple tokenized securities exchanges worldwide, aiming to enable transparent, real-time securities lending. If the investment is disclosed successfully later this year as scheduled, it would be the largest single investment in a blockchain startup, and will give the company a valuation at USD1.5bn.

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This will be GSR Capital’s first public investment in the fast-growing blockchain industry, as the PE firm has been primarily focusing on the EV industry over the past few years. Previously in February, GSR invested USD4.5bn in Turkey-based battery maker Zorlu. Earlier in March, the company also invested USD500m in Sweden-based EV producer National Electric Vehicle Sweden (NEVS). Other than the USD270m investment in tZero, GSR also plans to further invest up to USD105m in the startup’s parent company for a 10% stake. Upon the completion of the deal with GSR, will be valued less than its affiliate, even though the latter company hasn’t even launched its flagship product.

Yuxuan Mei