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The ongoing bear market has not prevented a $60 million fundraising effort from a Bitcoin-centric firm.
Unchained, a financial services provider catering to Bitcoin (BTC) holders, has revealed a $60 million Series B funding round spearheaded by Valor Equity Partners. NYDIG, Trammell Venture Partners, Ecliptic Capital, and Highland Capital Partners also took part.
Unchained Capital offers a more secure method for holding assets compared to keeping cryptocurrency on centralized exchanges or relying on a single key solution. Their custody model utilizes the Bitcoin network’s inherent multi-signature features, allowing clients to share control of their Bitcoin between private keys they manage and those held by Unchained or other financial service providers.
Multisignature solutions eliminate single points of failure and reduce counterparty risk by distributing it among several parties. In simple terms, the multi-sig process can be likened to a safe deposit box that requires two keys, one in the possession of the customer and the other with the bank.
Single points of failure were a common issue during the 2022 crypto downturns: From BlockFi to Celsius to Three Arrows Capital, various centralized solutions failed, taking users’ funds with them. Multisig significantly lowers risk since no single entity can abscond with the assets.
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Joe Kelly, CEO of Unchained Capital, stated:
“Multisig is one of the most important technologies in the ecosystem that can be taken mainstream. It helps to protect individuals from loss and theft, two of the biggest issues for the industry.”
Currently, Unchained secures over $2 billion in Bitcoin across thousands of keys worldwide. Casa, a competing crypto security firm, has recently incorporated Ethereum (ETH) into its range of products.
Related: 6M Bitcoin Are Secured by Shared Custody
As per the announcement, the $60 million in funding will be allocated to broaden the client base and enhance the product offerings. Kelly informed Cointelegraph:
“Using this fresh capital investment to expand our reach and suite of services, we hope to enable new entrants to Bitcoin to leapfrog centralized custodians into our safer collaborative custody model.”
Ultimately, the organization aims to promote the principle “not your keys, not your coins.” In light of the collapses of centralized exchanges, an increasing number of Bitcoin and crypto enthusiasts are learning to take custody of their assets, and multisig will likely play an increasingly significant role.
