in

Staking technology provider Kiln raises $17 million in rare crypto funding round

2023 was not the best year for crypto companies. According to PitchBook data, VC investment in crypto companies decreased by 68% in 2023 compared to 2022. To be fair, crypto companies still raised $9.5 billion. But that’s a small number compared to 2022, the year during which crypto companies raised $30 billion.

And yet, some startups fare better than others. French crypto startup Oven for baking just closed a $17 million funding round in December 2023. 1x is leading the round with Crypto.com, IOSG, Wintermute Ventures, KXVC and LBank also participating. Some existing investors are also putting more money into the company.

Even if you’re familiar with the big names in the crypto space, you might not be aware of Kiln because the company has focused on white-label infrastructure-focused products. Companies such as Ledger, Crypto.com, and Coinbase rely on Kiln’s technology for their pooled investment services in their non-custodial wallets (Coinbase Wallet, Ledger Live, etc.).

As a reminder, staking consists of locking crypto assets into the blockchain in order to secure the blockchain and its transactions. There are financial incentives when you invest assets while earning rewards over time.

Several proof-of-stake blockchains allow their users to invest in crypto assets, such as Polygon, Solana, and Avalanche. But by far the largest proof-of-stake blockchain is Ethereum, which has switched to this mechanism in September 2022.

In this ecosystem, Kiln offers a suite of smart contracts that facilitate staking. In essence, Kiln manages staking programmatically through these on-chain contracts. With a simple transaction, users participate in Kiln’s stake pools and start earning rewards. Kiln and its partners also receive a commission, which is also automatically processed by the smart contract.

Recommended Article
Hinge Health, a virtual physical therapist, is laying off 10% of its workforce

And it’s doing extremely well as a company currently manages 1,168,288 ETH invested. At today’s exchange rate, that represents nearly $3 billion in ETH assets under management. Over the past year, Kiln has increased its «shares under management» by 5x.

The largest Ethereum node validator operator

In addition to these on-chain products, Kiln has SDKs and APIs to facilitate integrations with its investment pools. It also manages a large network of validators. On the Ethereum blockchain, Kiln is currently the largest validator node operator with just over 4% market share according to Graded data.

«Managing your own validator nodes is a way to guarantee the highest level of security while optimizing for the highest financial results. It also helps when it comes to improving tracking. Ultimately, this hands-on approach helps us look like a legitimate company with strategic partners like the Ethereum Foundation, who share our best practices and anti-cutting strategy,” Kilna Marketing Manager Marie Siegrist told me.

They are there several ways offer staking or «pseudo-staking». For example, many centralized exchanges such as Coinbase and Binance offer investment rewards. Behind the scenes, these centralized exchanges manage crypto assets for you. There are also ongoing staking protocols such as Lido, which provides a different token to represent the ETH invested.

But if you want to integrate one-click staking into a custodial wallet, Kiln seems to be a good provider of white-label technology. It’s a low-level approach and some companies even ask Kiln to manage dedicated validators for them.

“Today’s news demonstrates our commitment to the development of our business investment platform and we are pleased to be joined by leading digital asset investors who are ready to help us achieve our goals. . . We have an exciting product offering and upcoming expansion plans, including setting up an office in Singapore,” Kilna co-founder and CEO Laszlo Szabo said in a statement.

Recommended Article
Unity will lay off another 1,800 employees, representing 25% of its workforce

Kiln has raised a total of $35 million since its inception. The company takes a commission from the investment rewards, which means that the company’s income will grow in parallel with the total assets under management.

#Staking #technology #provider #Kiln #raises #million #rare #crypto #funding

What do you think?

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

GIPHY App Key not set. Please check settings

Gentle giants killed by devastating Zimbabwe drought: Calves lie dead after more than 160 elephants die in devastating conditions – and more feared to follow

Project 1999: The year that changed culture after 25 years