A Bermudian-regulated digital assets firm has secured commitments for a capital raise of up to $217 million as it looks to expand its institutional business and technology platform.

XBTO said the funding will support the next phase of its growth, including scaling its client-facing infrastructure, launching new investment products and developing secured lending solutions.

The company also announced a partnership with ValueLabs, which has taken a minority stake in XBTO’s holding company. The collaboration will add ValueLabs’ artificial intelligence technology into XBTO’s platform.

XBTO, which operates under the oversight of the Bermuda Monetary Authority, was founded in 2015 as a proprietary trading firm and has since expanded into a broader institutional offering spanning custody, trading and asset management. It previously merged with crypto platform Stablehouse as part of its push into serving institutional and high-net-worth clients.

Earlier this month, XBTO partnered with Bermuda Commercial Bank to transform the firm’s American dollar payment infrastructure, and last year, collaborated with BermudAir on a $3 million revenue-share note issuance.

The company said the new capital will help position it as a “one-stop shop” for institutions who want exposure to digital assets within a regulated framework.

Philippe Bekhazi, founder and chief executive, said: “Our mission has always been to provide a world-class environment where institutional and high-net-worth capital feels at home.

“This partnership with ValueLabs allows us to reinforce that vision at an accelerated pace, delivering secure, sophisticated and institutional-grade services in a regulated environment.”

The move comes as institutional interest in digital assets continues to grow, with investors looking for structured and regulated entry points into the sector.

XBTO said it plans to expand its offerings across hedge funds, structured products and collateralised lending, while strengthening its custody and trading infrastructure under Bermuda and Abu Dhabi regulatory frameworks.