FinTech firm Unchained Capital closed a $5.5m equity seed round led by bitcoin technology and financial services company New York Digital Investments Group (NYDIG).
Other participants in the equity round included existing investors namely Ecliptic Capital, Starting Line, Platform Ventures, Stronghold Resource Partners, Trammell Venture Partners’ Bitcoin Venture Fund and Capital Factory.
Along with the investment, NYDIG made an initial lending commitment of $50m to support the firm’s bitcoin-backed multi-signature lending platform.
The new investment round will be used to institutionalise Unchained’s platform and further expand its reach among crypto enthusiasts, it said.
With the aim to help individuals and businesses store long-term wealth in bitcoin with private key ownership, Unchained’s platform provides a custody solution allowing clients to maintain unilateral control of their bitcoin while integrating financial services.
Through investments in its proprietary services platform and open-source applications, the company has introduced multi-signature as a technology for direct use by individuals and businesses.
The new funding came on the heels of Unchained reaching over $1bn of bitcoin secured and over $80m of loans originated, it said. The firm plans to use the proceeds to expand its lending and trade execution capabilities and grow its suite of services to include bitcoin lending and bitcoin payments infrastructure.
Unchained Capital and NYDIG both are focused on building critical infrastructure for bitcoin and delivering financial services while offering different custody architectures to different target markets.
Commenting on the partnership and new funding round, founder and executive chairman of NYDIG Ross Stevens said, “Combining forces, NYDIG and Unchained together can now act with a unified urgency to accelerate fairer and freer access to the Bitcoin monetary system.
“As fiat’s accelerating evaporation of value in bitcoin terms – 90% USD deprecation since just the beginning of 2019 – continues to wreck US savers’ title to their own human time, Unchained, with NYDIG’s increasing support, is doing important and critically necessary work.”
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