I recently found out about Matrixport which popped up as an advertisement on my Brave Browser. Seeing that there’s no local Matrixport review, I’ve decided to try it myself. My experience has been really positive so far.
What is Matrixport?
Matrixport is a digital asset trading, custody and lending startup founded by Bitmain co-founder Jihan Wu. Headquartered in Singapore, they have offices worldwide including Switzerland and Hong Kong. Launched in 2019, Matrixport has quickly become Asia’s largest neobank with $10 billion USD worth of asset under custody.
The co-founder Jihan Wu was the previous co-founder of the world’s largest mining equipment manufacturer Bitmain which produces GPU mining equipment to mine Bitcoins.
Matrixport is available as iOs and Android apps. The sign up process is smooth, with the usual KYC verifications needed for higher tier limits for deposits and withdrawals. Everything is done via the app. The whole experience for me has been buttery smooth, with document verification taking less than 1 hour.
For those feeling anxious about privacy, unfortunately Matrixport is a custodial platform and not DeFi. This means that your funds are held in custody in their exchange and there is a non-zero possibility of losing your funds due to hacks and so on.
However, what they offer in terms of products definitely gives them an advantage over DeFi yield farming in terms of ROI as of the time of writing this article.
What Can I Do With Matrixport?
Besides being a centralised custodial wallet, Matrixport allows stable yield farming as well as lending activities, similar to other custodial centralised “exchanges” like BlockFi and Binance. You can stake your cryptos in their fixed-income, flexi saving or DeFi products, with yields rivalling FD or even better.
What makes Matrixport slightly different is it allows users access to unique wealth products to invest their cryptocurrencies to compound their gains. What attracted me was the Dual-Currency and Smart Trend which I think are unique in the market.
Matrixport Dual-Currency Investment Products
How this works reminds me of options in stock trading. You basically invest a fixed amount into a dual-currency product with a “linked” price.
If the asset price remains higher than the price you bought, you earn the advertised yields. If it falls below, the trade gets settled in the cryptocurrency in question, so essentially you are buying the crypto at a lower price.
These products have very short tenures from 1 day up to 8 days. Matrixport allows users to compound their gains and leave their investments to auto-invest once the tenures is over. Taking into account the compounding gains, these dual-currency products currently offer up to 100% APY or sometimes even more. APY of 160-170% is even possible and not uncommon, but the offerings will fluctuate depending on the market price of the underlying asset being traded.
Is Matrixport Safe?
Assets under Matrixport are kept with Cactus Custody, which is a qualified custodian and a Hong Kong trust company that meets the capital reserve requirement and acts within regulatory and Anti-Money Laundering (AML) guidelines. Cactus Custody is also the custodian for Bit.com, a cryptocurrency exchange under the same umbrella group.
How Can Matrixport Afford to Offer Such High Yields?
According to Matrixport COO AMA Daniel Yan with Scott Melker on 25th June 2021 (available on YouTube here), Matrixport is able to offer higher yields from spot-futures arbitrage. Their fund offerings are managed by an in-house team of managers who compete for funds from clients, so in essence customers get access to the best-performing traders.
Start Investing with Matrixport
From now until 31st August 2021, enjoy 30% yield on a USDC fixed-income investment (maximum 1000USDC investment per user). Matrixport also gives you a free 1288 USDC coupon to try it out for a day (essentially you’ll get a 3 USDC rebate voucher that you can use later for your actual investment).
USE CODE: MN3S7K so we both get 20 USDC as signup reward until 31/8/2021. You must complete both steps to be eligible:
- Invest in the special 30% APY fixed income investment
- Complete KYC Tier 2 verification
I hope you enjoyed this Matrixport review. Happy investing! If you’d like to keep up to date with Matrixport updates and learn how to use all its myriad functions, feel free to join my private Matrixport Malaysia FB Group.
How to Fund Matrixport From Malaysia
The easiest method by far is by buying USDT from Binance, convert it to USDC and then send it to your Matrixport account. Click here to check out my detailed guide on how to buy USDC in Malaysia.