Ethereum Staking-as-a Service Startup Kiln Raises $17.6M
Kiln, a startup that allows customers to receive rewards for helping secure the Ethereum blockchain, raised 17 million euros ($17.6 million) in a Series A funding round from a group of investors including Consensys, GSR Ventures and Kraken's venture capital arm.
The Paris-based company plans to use the funds to expand its staking-as-a-service offerings, according to a Monday press release. Staking involves locking up a cryptocurrency for a period of time on a proof-of-stake blockchain such as Ethereum and receiving a share of the proceeds that come from verifying transactions. The world's second-largest cryptocurrency changed its consensus algorithm to proof-of-stake from proof-of-work in September, and staking services are expected to boom.
"Staking is going to be one of the core fabrics of the entire crypto industry," said Ciaran O'Leary, co-founder and general partner of BlueYard Capital, which invested in Kiln for the second time.
Staking-as-a-service products make it easy for custodians, exchanges, wallets and treasury managers to commit their digital assets to the blockchain. Kiln had $500 million of staked assets under management as of Nov. 23.
LeadblockPartners, Sparkle Ventures and XBTO also participated in the round, along with existing investors 3KVC, SV Angel and Alven.