Unchained Capital has completed a $60 million Series B funding round led by Valor Equity Partners and including cryptocurrency management giant NYDIG, the company said in a press release on Tuesday.
The round opened to investors midway through the first quarter of this year, with the first closing in April, which included more than half of the total amount raised, a source close to the company told CoinDesk. The capital will be directed towards expanding the customer base, improving the existing product suite and expanding the product offering.
Considering the size of the cryptocurrency bear market, which is only beginning to show signs of turning around in the first third of 2023, this is a significant funding round. Unchained itself was not vulnerable to the winter pressures of cryptocurrencies, as it cut its workforce by 15% of his in mid-November 2022.
Based in Austin, Texas, Unchained offers a joint custody solution that shares control of a user’s Bitcoin between private keys held by the user and those held by Unchained and other financial services providers. increase. This model leverages Bitcoin’s native multi-signature capabilities to provide the benefits of self-custody without the risks associated with single points of failure such as lost or stolen keys. Unchained does not have the ability to independently move or utilize client funds. This was the type of action that led to the collapse of the cryptocurrency exchange FTX. According to the company, Unchained currently protects over $2 billion worth of Bitcoin across thousands of keys.
Unchained also offers Bitcoin-backed loans and has originated over $500 million in loans since 2017. The company’s other services include a trading desk and an IRA offering where customers can buy bitcoin directly.
“Amid market turmoil, Unchained has emerged as a highly trusted provider of Bitcoin custody and financial services through superior technology, risk management, regulatory compliance and customer service,” said Valor Partner Vivek Pattipati. said Mr. of directors. “Especially in lending, the company differentiated by minimizing risk to both lenders and borrowers, providing resilience and a great opportunity to gain market share.”
Other investors in this round included Trammell Venture Partners, Ecliptic Capital and Highland Capital Partners. NYDIG previously co-led his $25 million Series A in Unchained Capital in June 2021.