Texas-based Unchained Capital has successfully raised $60 million in a Series B funding round led by Valor Equity Partners and featuring crypto asset-management giant NYDIG. The funding round opened to investors halfway through the first quarter of 2023 and had an initial close in April, which included over half of the total raised. The new capital will be used to grow the client base, improve existing product suites, and expand product offerings. Unchained Capital offers a collaborative custody solution that shares control of a user’s bitcoin between a private key the user holds and private keys held by Unchained and other financial services providers.
Unchained Capital’s collaborative custody model utilizes bitcoin’s native multisignature capabilities to provide the benefits of self-custody without the risks that come with a single point of failure, such as a lost or stolen key. Unchained is currently securing over $2 billion in bitcoin across thousands of keys, according to the company. The firm’s services also include bitcoin-collateralized loans, a trading desk where clients can directly buy bitcoin, and an IRA offering.
Despite the crypto bear market, Unchained Capital has managed to raise a notable amount of funds. In the first third of 2023, the market is only beginning to show signs of turning around. Unchained itself wasn’t immune to the pressures of crypto winter, having cut its workforce by 15% in mid-November 2022. However, the company has emerged as a highly trusted provider of bitcoin custody and financial services through superior technology, risk management, regulatory compliance, and client service.
The firm’s lending service has differentiated itself by minimizing risk to both the lender and the borrower, leading to resilience and an extraordinary opportunity to capture market share. Other investors in the round included Trammell Venture Partners, Ecliptic Capital, and Highland Capital Partners. NYDIG previously co-led the $25 million Series A for Unchained Capital in June 2021. Valor partner Vivek Pattipati will be joining the Unchained board of directors.
Unchained Capital’s collaborative custody model has gained popularity among investors due to its ability to offer the benefits of self-custody without the risks that come with a single point of failure. The model has been able to secure over $2 billion in bitcoin across thousands of keys. The firm’s successful funding round is a testament to the trust placed in the company by investors. The new capital will go towards expanding the company’s offerings and growing its client base. Unchained Capital’s differentiated lending service has been able to minimize risk to both the lender and the borrower, leading to resilience and an extraordinary opportunity to capture market share. The company’s success is a sign of the growing demand for reliable and secure bitcoin custody and financial services.