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 that included crypto incubator Consensys, investment firm GSR and crypto exchange 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 press release Monday.
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,” Ciaran O’Leary, co-founder and general partner of BlueYard Capital, which invested in Kiln for the second time, said in the press release.
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.
CORRECTION (Nov. 28, 14:14 UTC): Corrects investor name to GSR in first paragraph. An earlier version of this story said the investor was GSR Ventures.
Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas.
Please note that our
has been updated
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
CoinDesk is an independent operating subsidiary of
which invests in
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG