COSIMO Digital Asset Holding Company Funding Round

COSIMO, a digital asset holding company founded in 2014, is raising $25 million in a funding round led by Des Mac Intyre, a co-founder of Eolas Capital and a former executive at Bridgewater Associates and Mellon Investments Corporation.

The initiative comes as COSIMO aims to consolidate its various services, including crypto investment, custody, advisory, and brokerage, under a “single, unified visionary brand.” The company announced this development in a statement on Tuesday.

Rebranding to COSIMO Digital

Now known as COSIMO Digital, the company has been relatively quiet while focusing on deep tech. In operation for a decade, COSIMO has expanded into numerous crypto subsectors and aspires to rival Galaxy Digital, with a presence in both the U.S. and the E.U.

Ciaran Hynes, co-founder, stated, “Obviously we’re not as big as Galaxy, yet — but that’s our vision.” He noted that until now, the firm had been focused on building rather than media presence.

Early Ventures

Initially, the firm used special-purpose vehicles to invest in early-stage crypto companies in 2014 before branching into crypto venture financing in 2017. Hynes and Rob Frasca, his co-founder, were initially on a traditional fund path until they explored tokenization.

Hynes remarked, “We actually stopped our normal capital raise and decided to go down that route,” which took two years to navigate tax implications, engaging multiple lawyers and tax experts. The COSIMO X fund launched in 2019, now managing approximately $21 million.

The firm was one of the first clients of Securitize and provided feedback to develop their tokenization platform, which is now widely used.

Tokenization Sector and COSIMO X Portfolio

Tokenization is seen as a promising industry within crypto, potentially growing into a multi-trillion dollar market. COSIMO X’s portfolio includes roughly 25 placements, such as Uphold, Sovryn, Hedera, and Black Manta. The fund offers 2.5% management fees and 15% performance fees.

Additionally, COSIMO launched COSIMO Y, a hedge fund focusing on staking rewards from various chains like Avalanche and Ethereum. Hynes compared COSIMO Y’s goal to that of Grayscale for Bitcoin, aiming to simplify investment in other segments of the market.

The firm serves ultra-high-net-worth individuals and family offices, and is supported by a university endowment from the Rochester Institute of Technology. Hynes observed an increase in institutional investors looking to enter the crypto space, driven by positive market conditions.

Beyond the X and Y funds, COSIMO established Fortuna, a digital asset custodian licensed by the Central Bank of Ireland for operations in 27 EU states. COSIMO is also the major investor in Black Manta, one of the few regulated broker-dealers in digital asset management.

With the latest funding news public, Hynes anticipates further announcements, including projects related to the “creator economy.”

Des Mac Intyre said, “We are excited to partner with COSIMO digital on their future expansion and believe they are a very significant player in these emerging and exciting markets.”