Unchained Capital, a Texas-based financial services provider for Bitcoin holders, has raised $60 million in a Series B funding round led by Valor Equity Partners. The round also saw participation from NYDIG, Trammell Venture Partners, Ecliptic Capital, and Highland Capital Partners. The company offers a more secure way for clients to hold their Bitcoin fees through a custody model that leverages the Bitcoin network’s native multi-signature capabilities. Clients share control of their Bitcoin between private keys they hold themselves and private keys held by Unchained or other financial services companies. This model eliminates single points of failure and mitigates counterparty risk by sharing it between multiple parties.
The multi-signature process can be compared to a safe deposit box with two keys, one held by the customer and the other by the bank. This method radically reduces risk as no one party can run off with the funds. Unchained Capital secures over $2 billion in Bitcoin across thousands of keys globally. The $60 million in funding will be used to expand the client base and product offering further. The CEO of Unchained Capital, Joe Kelly, stated that “Using this fresh capital investment to expand our reach and suite of services, we hope to enable new entrants to Bitcoin to leapfrog centralized custodians into our safer collaborative custody model.”
Unchained Capital’s custody model addresses a recurring theme during the 2022 crypto collapses: single points of failure. From BlockFi to Celsius to Three Arrows Capital, an array of centralized solutions collapsed, taking users’ funds along the way. Multisig solutions eliminate this risk by sharing it between multiple parties. Kelly explained that “Multisig is one of the most important technologies in the ecosystem that can be taken mainstream. It helps to protect individuals from loss and theft, two of the biggest issues for the industry.”
Casa, a competitor crypto security company, recently added Ethereum to its suite of products. Unchained Capital’s funding round will help the company expand its reach and suite of services, and further the mantra “not your keys, not your coins.” In light of centralized exchange collapses, greater numbers of Bitcoin and crypto enthusiasts learn to take custody of their assets, and multisig will undoubtedly play a greater role. Unchained Capital’s model provides a secure way for clients to hold their Bitcoin fees and mitigate counterparty risk.