Ledger goes into overtime. In 2021, in the midst of the cryptocurrency boom, the French startup producing physical wallets raised 380 million dollars, or 312 million euros. It then propelled itself to the rank of French unicorn, the first in the crypto sector.
Ledger has since been joined by Sorare, but the digital asset security specialist isn’t done yet. The latter announced an extension of its series C, completing its initial raising of an additional 100 million euros.
From the Internet of Content to the Internet of Value
For this new funding round, Ledger is relying on new entrants, as well as on historical investors. The 100 million euro transaction thus involves True Global Ventures, Digital Finance Group and VaynerFund.
Among the existing investors, 10T, Morgan Creek, Korelya Capital, Molten Ventures and Cathay Innovation have returned to the pot. Ledger and Cathay know each other well. The two partners have even created their own Web3 investment fund together, Ledger Cathay Capital, financed to the tune of €100 million.
But why extend its series C, without cutting back on its capitalization, however, after two years? And above all, how to convince investors while the crypto-asset sector is going through strong turbulence?
The ambitions displayed by the CEO of Ledger are not unrelated to this. For Pascal Gauthier, the startup’s mission is to secure value, a reference to one of the fundamentals of Web3 or the Internet of value.
NFT and cryptocurrencies are examples of this value enabled by the blockchain, the infrastructure layer of Web3. However, its supporters anticipate the tokenization of a large number of other assets, such as bonds or stocks in finance.
Identity, actions, data… tokenized assets to be secured
In its latest report, the Citi bank estimates that the tokenization of securities could reach 4,000 billion dollars by 2030. The digital currencies of central banks would represent 5,000 billion by this same deadline.
These assets, i.e. the value of these digital goods, will have to be secured. Ensuring the security of this value is precisely Ledger’s core business. The physical wallets of the manufacturer allow their holder to retain their assets and also control.
It’s ownership, another of Web3’s core values. With its new fundraiser, Ledger therefore intends to accelerate and prepare for the mass adoption of the blockchain – in 6 to 8 years according to Citi.
“These funds will accelerate our mission to bring a new generation of secure consumer devices to hundreds of millions of people exploring critical digital assets and blockchain-based technology,” says Pascal Gauthier.
In addition to its hardware terminals, including its latest generation Ledger Stax, the unicorn is also increasingly developing its service and software offering (Ledger Live and Extension), including in the B2B segment.
Web3 Ledger iPhone Wallets
Its enterprise SaaS solution provides cash management, DeFi, NFT and tokenization functions. However, competition is fierce in these emerging activities, particularly between We3 pure-players and traditional finance and technology players.
The tokenization of value and the disintermediation it generates redistribute roles and positions in the food chain. For Ledger, this is an opportunity. “Our Ledger devices will allow you to manage an ever-wider range of tokenized assets”, projects the CEO.
Among these assets, financial securities, but also “your identity, your data, your actions and much more.” Pascal Gauthier would see his wallets as the new Web3 iPhones. An ideal position in this Internet of value.
“In five to ten years, I am convinced that the rise of the Internet of value will reshape the way billions of people own and manage their assets”, projects Pascal Gauthier. However, he believes, PCs and smartphones do not offer the necessary security.
“These devices were designed to produce and share content in a centralized information Internet,” he argues. As a result, in the era of decentralization, Internet users “need a new generation of hardware to explore this new chapter.”