Benzinga - Despite the recent stagnant performance of Bitcoin's (CRYPTO: BTC) value, Unchained, a firm dedicated to offering financial services exclusively for Bitcoin, announced its growth and a $60 million Series B funding round.
What Happened: Unchained stated Valor Equity Partners led the initial closing of the round last week, with other participants including NYDIG, Trammell Venture Partners, Ecliptic Capital and Highland Capital Partners.
Although the company did not disclose the size of the initial close, the Block reported a source who said that it amounted to roughly $30 million, with an additional $20 million already pledged.
Once the Series B round is finalized, Unchained's total funding to date will reach $115 million.
The firm also disclosed a $15 million Series A extension round led by Ten31, which was completed last fall.
Unchained, established in 2016 and headquartered in Austin, Texas, offers Bitcoin custody, lending and trading services to retail and institutional clients.
Also Read: Crypto Revolution Hits The UAE: Is This The Start Of A New Middle Eastern Crypto Hub?
The company's "collaborative" custody model, combining self-custody benefits with the company's backup for clients who lose a private key, has fueled its growth amid the collapse of centralized crypto platforms such as FTX and BlockFi.
"Unchained is in a remarkable position while many other lenders and financial services providers in the space have gone bankrupt," Unchained CEO Joe Kelly said. "We have a strong market position from which we can grow our brand and client base with a proven track record and safe custody model."
Why It Matters: Kelly also mentioned the recent failures in the cryptocurrency sector have led to an influx of new clients for Unchained, despite an overall decline in trading volumes and loan demand.
Kelly attributed the company's "zero loan losses" to its consistently low loan-to-value (LTV) ratio of 40%-50% and its policy against rehypothecating client assets.
This approach ensures that collateral is always available to cover loans and borrowers can comfortably meet margin calls.
Read Next: Do Kwon's Lavish Serbian Hideaway - Inside The Crypto Magnate's Secret Sanctuary
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.