Kiln Raises $17 Million Funding to Expand its Crypto Staking Platform
Kiln raised $17 million in funding to advance product development and support global expansion initiatives.
Institutional cryptocurrency staking platform Kiln announced it closed a $17 million funding round led by 1kx, with participation from Crypto.com, IOSG, Wintermute Ventures, KXVC and LBank. Existing investors, including Kraken Ventures, GSR and Avon Ventures also contributed to the round.
The newly raised capital will be directed towards Kiln’s global expansion initiatives, with a specific focus on the growth of its Asia-Pacific (APAC) division, following the opening of the platform’s regional headquarters in Singapore in Q1. The new funding round elevated Kiln’s total funding to $35 million.
The allocated funds will also be utilized for advancing product development, specifically by incorporating additional reward mechanisms in the decentralized finance (DeFi) sector. The company is presently in the process of developing a DeFi product that facilitates integrator customers, such as wallets, exchanges and custodians, to capitalize on opportunities related to stablecoin rewards.
“Our mission is to democratize value creation in the digital assets ecosystem, providing millions of users with easy access to rewards through our platform. We have an exciting lineup of products and upcoming expansion plans, including the establishment of an office in Singapore,” said Laszlo Szabo, co-founder and chief executive officer of Kiln.
Kiln’s staking platform provides institutional clients with the ability to stake their assets and extend white-label solutions to their customers. While the platform supports multiple proof-of-stake blockchains, the majority of Kiln’s staked assets, valued at over $3.1 billion, predominantly are on the Ethereum blockchain.
“Financial institutions will become a dominant force in crypto, leveraging the immense market opportunity as they stake on behalf of their customers,” said Christopher Heymann, Founding Partner of 1kx.
Kiln Aims to Elevate Crypto Staking Landscape
Through the application of specialized smart contracts, Kiln empowers cryptocurrency users to stake smaller amounts, introducing flexibility to the staking process. The platform allows the pooling of stakes, enabling users to collectively meet the 32 ETH, equivalent to $81,000, minimum requirement. This approach provides an alternative to similar flexible staking options offered by liquid staking protocols such as Lido and Rocket Pool.
The platform has witnessed a remarkable surge, growing its staked assets under management by more than five times in 2023, reaching a total of $4.2 billion. This expansion is attributed to the platform’s integration with various custody solutions, wallets, and exchanges throughout the preceding year. In 2023, Kiln engaged in collaborative efforts with Ledger Live and Crypto.com to facilitate similar integrations. Presently, Kiln is the largest operator of Ethereum validator nodes, representing 4% of the Ethereum network.
In the previous investment round, Kiln raised $17.6 million in funding from Illuminate Financial, LeadBlock Partners, Sparkle Ventures, Alven, and Blue Yard Capital, among others.
Recently, Coinbase Cloud incorporated Kiln’s on-chain staking protocol into its services, enabling users to participate in native ETH staking with amounts below the 32 ETH minimum. Traditionally, engaging in native ETH staking requires a minimum of 32 ETH. This high entry threshold represents a significant obstacle for potential participants in the staking process.
Kiln’s recent funding is set to transform the platform by elevating its offerings, facilitating its expansion into the South Pacific region, and ultimately allowing it to attract a greater number of institutional investors.
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