Despite the bearish trend in the crypto market, Unchained Capital, a financial services provider for Bitcoin holders, has raised $60 million in a Series B funding round led by Valor Equity Partners. The funding round also saw participation from NYDIG, Trammell Venture Partners, Ecliptic Capital, and Highland Capital Partners.
Unchained Capital’s approach to Bitcoin custody is different from traditional centralized exchanges or single key solutions. The company uses multi-signature technology to enable clients to share control of their Bitcoin holdings between private keys they hold themselves and private keys held by Unchained or other financial services companies. This approach eliminates single points of failure and counterparty risk by sharing the control of funds between multiple parties. The multi-signature process can be compared to a safe deposit box with two keys, one held by the customer and the other by the bank.
During the 2022 crypto market crashes, centralized solutions such as BlockFi, Celsius, and Three Arrows Capital collapsed, resulting in the loss of users’ funds. This has highlighted the importance of mitigating counterparty risk and eliminating single points of failure, which can be achieved through the use of multi-signature solutions. Unchained Capital has secured over $2 billion in Bitcoin across thousands of keys globally, highlighting the growing demand for more secure custody solutions in the crypto market.
Joe Kelly, CEO of Unchained Capital, noted that multi-signature technology is one of the most important technologies in the Bitcoin ecosystem that can be taken mainstream. He explained that it helps protect individuals from loss and theft, which are two of the biggest issues in the industry. The funding from the Series B round will be used to expand Unchained’s reach and suite of services, allowing the company to enable new entrants to Bitcoin to leapfrog centralized custodians into their safer collaborative custody model.
Unchained Capital’s success in raising $60 million in Bitcoin funding highlights the growing interest in more secure and collaborative custody solutions in the crypto market. Casa, a competitor crypto security company, recently added Ethereum to its suite of products. As greater numbers of Bitcoin and crypto enthusiasts learn to take custody of their assets, multi-signature technology will undoubtedly play a greater role in ensuring their security. Ultimately, Unchained Capital hopes to further the mantra “not your keys, not your coins,” highlighting the importance of taking control of one’s assets in the crypto market.