Cryptocurrency startup MoonPay has raised fresh capital from investors led by Tiger Global Management and hedge fund Coatue at a valuation of $3.4 billion, becoming the latest venture to capitalize on sky-high investor demand for rapidly growing companies in the sector.

The company said on Monday it had raised $555 million in a Series A funding round that also saw participation from Blossom Capital, Thrive Capital, Paradigm and NEA.

MoonPay's valuation comes as bitcoin, the largest and most popular cryptocurrency, is trading close to $60,000 per unit even though digital asset classes like it have come under global regulatory scrutiny for their potential use in money laundering.

Several other companies in this space have also caught the fancy of investors this year. Crypto startup Gemini, led by internet entrepreneurs Cameron and Tyler Winklevoss, fetched a valuation of $7.1 billion last week. FTX Trading, a platform for buying and selling cryptocurrencies, was valued at $25 billion after a funding round last month.

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MoonPay, which is profitable, says it helps businesses transact digital assets quickly and smoothly. It also claims it had helped Bitcoin.com, a blockchain technology company, boost its revenue more than six-fold.

The company said its technology for non-fungible tokens, unique crypto tokens that cannot be replicated, has also been used by NFT marketplace OpenSea.