China-based ImToken, one of the first cryptocurrency and Ethereum wallets to be listed on the Apple App Store, has processed more than $35 billion in deposits over the past few years, surpassing Coinbase.

Similar to Blockchain, MyEtherWallet, and MyCrypto, ImToken is a free and non-custodial wallet that enables users to store, send, and receive cryptocurrencies such as Ethereum while maintaining full control over their private keys and accounts.

In the early days of Ethereum, prior to the creation of popular wallets such as MyEtherWallet and MetaMask, ImToken was the only reliable mobile wallet users could utilize on mobile devices. The first-mover advantage of ImToken and the app’s simplicity led the platform to settle over $35 billion in deposits, an amount that is larger than 99 percent of the banks in the US.

In May, Bloomberg reported that Xapo, which has processed over $10 billion in deposits over the past three years, has more money stored in its vaults than 5,670 banks in the US, or 98 percent of the banks in the country. $35 billion worth of deposits in Ether and other cryptocurrencies would place ImToken in the top 0.5 percent, along with major banks and financial institutions.

Investment From Chinese VC Giant IDG Capital

This week, ImToken received a $10 million Series A funding round from IDG Capital, which is based in China and one of the biggest venture capital firms in Asia. IDG Capital has invested in more than 700 companies with 150 successful exits, including multi-billion dollar companies such as mobile phone manufacturer Xiaomi, portable battery manufacturer Anker, cryptocurrency company Circle, and cryptocurrency exchange Coinbase.

ImToken’s business model is similar to that of Blockchain and other non-custodial platforms in the blockchain sector; it does not have a stable revenue source due to its transparent operation and its free software. While the simplicity of ImCrypto’s platform ultimately led to its long-term success, the difficulty of monetizing ImToken, despite the billions of dollars stored on the platform, would be considered a major issue by investors, especially venture capital firms, in the traditional tech industry.

The $10 million investment from IDG Capital demonstrated confidence in the long-term growth of the cryptocurrency sector and wallet operators in the space. Although non-custodial wallets lack revenue and have small profit margins as of right now, venture capital firms are still leading multi-million dollar funding rounds, acknowledging the potential of cryptocurrency wallets.

“We noticed very early the potential of Ethereum and focused on it to differentiate [ourselves from] competitors. The growth has been completely organic. We didn’t have any marketing or promotional budget,” ImToken founder Ben He said, suggesting that the newly acquired operating capital from IDG would enable the company to pursue marketing and aggressive expansion into the global cryptocurrency market.

Confidence From Investors

Recently, during an interview with Bloomberg Television, Dan Morehead, CEO of $1 billion cryptocurrency hedge fund Pantera Capital, stated that the valuation of the cryptocurrency market could surpass $40 trillion in the long term.

“The $400 billion crypto market could balloon to $4 trillion, and even $40 trillion is definitely possible. It’s the 10-year forecast. It’s not going to happen overnight,” said Morehead.

Large-scale venture capital firms and hedge funds are generally optimistic about the long-term health of the cryptocurrency market and are confident that cryptocurrencies will evolve into a major asset class, competing against traditional assets and the global financial system.