Kiln, the platform enabling enterprise-grade staking for institutions, both crypto-native and fintech, is today announcing the completion of a $5M funding round. The startup is a service provider enabling financial institutions and private asset managers to offer its clients the chance to earn a return through its white-label staking as a service platform.
This round of financing was supported by the investors: Third Kind Managing Partner and Andreessen Horowitz (a16z) board partner Shana Fisher alongside other investors SV Angel, Blue Yard, Alven and Kima Ventures.
The B2B staking service
Staking cryptocurrencies is becoming a popular method for Web3 & crypto investors to earn “passive income” on their digital asset holdings without the need to sell. Simply summed up, staking can be thought of as the crypto equivalent of putting money in a high-yield savings account. Just as deposited funds in a savings account are lent out by banks, with a portion of the interest earned from lending paid to the depositor, staked digital assets enable the running of the blockchain as well as the maintenance of its security. Staking returns are often much higher than interest rates offered by banks.
Institutional interest in & adoption of crypto as well as DeFi has been on the rise, with products tailored to institutions being launched earlier in 2022. An example of such is Aave Arc., an institutional-focused digital asset custody firm having more than $268B in assets under custody, which institutions will be looking to put to work through staking.
Kiln was founded by Laszlo Szabo who also co-founded the tech recruitment firm Skill Hunter together with Ernest Oppetit, a former product manager at Improbable and Qubit; and Thomas de Phuoc, who was previously worked as the Country Lead for France at Circle. The team has built a leading enterprise-grade staking platform which will further fuel the growth and security of the decentralised world. Kiln’s staking-as-a-service product is offered directly to institutional customers or as a white-label product for companies to integrate staking services into their offerings.
Both are accompanied by integrations with all major wallets and custodians, automated rewards management, industry-leading SLAs (Service Level Agreements) and a comprehensive monitoring solution, available via a dashboard or API.
Kiln has now grown to have $700M in assets under stake, which accounts for a 2% share of all Ethereum staked. The startup is the only prominent player focusing on B2B in Europe, currently supporting the staking of Ethereum, Solana, Tezos, NEAR, Terra, and Cosmos zones, with many additional blockchains in the pipeline.
With its new funding, Kiln expects to bring on new talent, enhance its tech and build out its service, which enables fintechs, crypto firms and financial institutions to offer 1-click staking of crypto assets to their customers or to directly stake their own crypto-assets with Kiln.