Bitcoin Financial Services Firm Unchained Capital Raises $60 Million
Unchained Capital has completed a $60 million Series B funding round led by Valor Equity Partners and including crypto asset 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 and had an initial close in April that included more than half of the total raised, a source close to the company told CoinDesk. The new capital will be used to expand the customer base, improve the existing product package and expand the product offering.
It’s a particularly large fundraiser given the extent of the crypto bear market which, in the first third of 2023, is only beginning to show signs of turning. Unchained itself was not immune to the pressures of crypto winter, having cut its workforce by 15% in mid-November 2022.
Austin, Texas-based Unchained offers a collaborative custody solution that divides control of a user’s bitcoin between a private key the user holds and private keys held by Unchained and other financial service providers. The model uses bitcoin’s native multi-signature capabilities to offer the benefits of self-storage without the risks associated with a single point of failure, such as a lost or stolen key. Unchained does not have the ability to move or spend client funds on its own, which were the kinds of actions that contributed to the collapse of crypto exchange FTX. Unchained currently secures over $2 billion in bitcoin across thousands of keys, according to the company
Unchained also offers bitcoin-backed loans and has originated over $500 million of such loans since 2017. The firm’s other services include a trading desk, where clients can buy bitcoin directly, and an IRA offering.
“In the midst of market chaos, 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, who will join the Unchained board. of directors. “Especially in lending, the company has differentiated itself by minimizing risk for both the lender and the borrower, which has led to resilience and an extraordinary opportunity to take market share.”
Other investors in the round included Trammell Venture Partners, Ecliptic Capital and Highland Capital Partners. NYDIG previously led a $25 million Series A for Unchained Capital in June 2021.
