The current bearish trend in the cryptocurrency market has not stopped Unchained Capital to successfully raise $60 million in Series B funding. Several companies participated in this fundraising campaign, including Valor Equity Partners, Trammell Venture Partners, NYDIG, Highland Capital Partners and Ecliptic Capital.
Unchained Capital is a Texas-based financial services provider specializing in cryptocurrencies and primarily the Bitcoin. Its Series B fundraising led by Valor Equity was successful, despite the current market trend.
A fundraiser to offer a custodial service based on the multi-signature process
The purpose of this fundraising is to offer a safer and less restrictive custody or custody service for tokens. Thus, unlike storage on a centralized platform or on a single key, the custody service offered by Unchained is based on the native capabilities of bitcoin network multi-signature.
Concretely, with this token custody model, customers have control of their bitcoins. In addition, they share this control through private keys which they retain. holding and private keys administered by Unchained or another platform offering the same services.
Thanks to that multi-signature solution, it is possible to overcome single points of failure. Similarly, by sharing the signature with several parties, it is also possible to reduce counterparty risk.
In simpler terms, you have to compare the service offered by Unchained which is based on the multi-signature solution to a safe with two keys. One of the keys will be held by the customer, while the other will be kept by the bank where this safe is located.
A guard service to end single points of failure
Throughout the cryptocurrency winter of 2022 and the serial bankruptcies of crypto exchanges, single points of failure have been at the heart of the debate. Indeed, we have witnessed the collapse of several service providers, among which we find Three Arrows CapitalCelsus or De BlockFi.
being centralized solutions, the bankruptcy of these providers led to the loss of their users’ funds. If they had gone through the multi-signature process, the customers certainly wouldn’t have been broke.
With this new multi-signature custodial service, Unchained Capital seeks to prevent such occurrences. Joe Kelly, its CEO spoke about this by explaining:
“The multi-signature process has the potential to be democratized and is a must-have technology in the crypto ecosystem. With widespread adoption of this technology, it is possible to protect users in the event of loss or theft. of their funds, which is very common in the industry.
In the words of Joe Kelly, reported by Cointelegraph, the $60 million in funding will helpexpand customer base of the company and to develop the product offering. He added that:
“Through this investment, Unchained will be able to expand both its reach and range of services. The long-term goal is to enable new entrants to the bitcoin market to adopt the collaborative custody model which is more secure and not to rely solely on centralized platforms.
This idea is welcome in a context where centralized exchange platforms are constantly going bankrupt. Thus, many holders of bitcoins and cryptos will be seduced by the collaborative custody and particularly by the multi-signature technology.
It should be remembered that Unchained has more than two billion dollars in secure bitcoins across thousands of keys worldwide.