Ethereum Staking Services Startup Receives $17.6 Million Funding

Paigambar Mohan Raj
Source: Bitcoinist

Ethereum (ETH) moving to a Proof-of-stake (PoS) method of consensus was one of the most historic moments for the network and the crypto industry. Although the move was deemed as “selling the news,” new startups are coming up to utilize the transition.

Recently, the Paris-based Ethereum staking-as-a-service startup, Kiln, raised $17.6 million in a Series A funding round. Among the investors were Consensys, GSR Ventures, and Kraken’s venture capital arm. Along with previous investors 3KVC, SV Angel, and Alven, the round also included participation from LeadblockPartners, Sparkle Ventures, and XBTO.

The organization indicated that in order to satisfy the expanding customer need for risk spreading, the staking market must go beyond operating validators and become institutionalized. Enabling multi-provider staking entails developing APIs and services that are independent of validators.

In turn, this makes it possible to stake digital assets anywhere they are kept, including in wallets, custodians, and exchanges. Kiln is in a position to play the aggregator function and accelerate it as the industry changes and the need to incorporate multiple staking participants emerges as a legitimate necessity.

Laszlo Szabo, co-founder & CEO of Kiln, stated,

“I am thrilled to close a robust funding round with such respected investors in the crypto space which will enable us to build out the next generation market standard in staking technology.”

What does Kiln expect from Ethereum?

Kiln expects the demand for staking ETH to increase tremendously in the wake of the Ethereum network’s switch to a Proof of Stake (PoS) consensus (The Merge) in September, which significantly reduced the protocol roadmap’s risk. Only 12.5% of the total supply of ETH is currently staked, compared to 50–80% for other PoS assets. Additionally, since the Merge, ETH has had an annual percentage yield in the 6-7% region, providing investors with an alluring return rate.

Custodians, exchanges, wallets, and treasury managers can easily transfer their digital assets to the blockchain with the help of staking-as-a-service companies. As of Nov. 23, Kiln managed staked assets worth $500 million.

Ethereum (ETH), meanwhile, is struggling in the price charts. The second largest crypto by market cap is hovering above the $1.1k level. At press time, ETH was trading at $1,172.82, down by 3.6% in the last 24 hours.