Unchained Capital, a 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.
Unchained Capital offers a more secure way to hold fees than storing crypto on centralized exchanges or on a single key solution.
Their custody model leverages the Bitcoin network’s native multi-signature capabilities, with clients sharing control of their Bitcoin between private keys they hold themselves and private keys held by Unchained or other financial services companies.
This approach eliminates single points of failure and mitigates counterparty risk by sharing it between multiple parties, thus reducing the risk of losing funds.
The CEO of Unchained Capital, Joe Kelly, believes that multisig technology is one of the most important in the ecosystem and that it can be taken mainstream, protecting individuals from loss and theft, which are two of the biggest issues in the industry.
Unchained Capital has already secured over $2 billion in Bitcoin across thousands of keys globally, and the $60 million in funding will be used to expand the client base and product offering further.
The company hopes to enable new entrants to Bitcoin to leapfrog centralized custodians into its safer collaborative custody model.
The funding comes at a time when centralized solutions have been collapsing, taking users’ funds with them. Multisig solutions reduce risk as no one party can run off with the funds.