JAN 19, 2024
Kiln raises $17M to fund APAC growth
Kiln, the Paris-based Ethereum staking platform, has successfully secured $17 million in a recent funding round, as revealed in a press release on Thursday.
Round led by 1kx
The financing round was spearheaded by 1kx, with participation from Crypto.com, Wintermute Ventures, Thailand’s KXVC and Hong Kong’s LBank and IOSG. This infusion of capital brings Kiln’s total funding to $35 million, marking a milestone in the company’s growth trajectory. The latest funding follows a previous investment of $17.6 million in 2022 from Illuminate Financial, LeadBlock Partners, Sparkle Ventures, Alven and Blue Yard Capital, among others.
Kiln opted not to disclose the valuation associated with the recent funding round. In 2021, Canadian blockchain infrastructure and staking firm Figment reached unicorn status with a $1.4 billion valuation.
The Kiln platform has witnessed significant growth, increasing its staked assets under management to $4.2 billion in 2023. Acknowledging that growth on Jan. 4, Fred Lardieg, partner at Abu Dhabi sovereign fund Mubadala wrote:
The firm’s expansion is attributed to strategic integrations with various custody solutions, wallets and exchanges over the past year.
Regional headquarters in Singapore
The funds raised will be instrumental in facilitating Kiln’s global expansion initiatives, including the establishment of its Asia-Pacific (APAC) headquarters in Singapore during the first quarter of the year. Additionally, the company aims to allocate resources for further product development to enhance its offerings in the decentralized finance (DeFi) space.
Laszlo Szabo, CEO and co-founder of Kiln, articulated the company’s mission, stating:
“Our mission is to democratize value creation in the digital assets ecosystem, providing millions of users with easy access to rewards through our platform.”
The funds will support Kiln’s commitment to making value creation in the digital assets space more accessible globally. The company plans to use the funding not only for expansion but also to introduce additional reward mechanisms in the rapidly evolving DeFi landscape.
While Ethereum staking offers users the opportunity to earn yields by validating transactions on the blockchain, the regulatory landscape remains uncertain. The U.S. Securities and Exchange Commission (SEC) has taken legal action against several exchanges involved in crypto staking, with SEC Chairman Gary Gensler expressing views on Ethereum-like tokens as potential securities.
Despite regulatory challenges, Kiln’s staking platform caters to institutional clients, allowing them to stake assets and offer white-label solutions to their customers. With a focus on proof-of-stake blockchains, Kiln holds a significant portion of staked assets on Ethereum, exceeding $3.1 billion, according to its Dune Analytics dashboard.
1kx Founding Partner Christopher Heymann emphasized the increasing role of financial institutions in the crypto space, stating:
“Financial institutions will become a dominant force in crypto, leveraging the immense market opportunity as they stake on behalf of their customers.”
By utilizing smart contracts, Kiln allows users to stake smaller amounts, overcoming the traditional barrier of a 32 ETH minimum requirement for native ether staking. This approach aligns with Kiln’s goal of fostering inclusivity in the rapidly expanding world of decentralized finance.