Yield-bearing assets data tracker, Staking Rewards has pulled $3.2 million (CHF 3 million) from industry heavyweights including Galaxy Digital, Digital Currency Group, and CoinShares amongst others. The funding round which was over-subscribed 6x also enjoined participation from 1kx Capital and Sygnal Ventures.
Staking services are fast becoming popular in the digital currency ecosystem, and many investors both retail and institutional are exploring avenues to tap into the trend. Using the new capital injection, Staking Rewards said it will be developing its products, as it looks to grow to serve more users in the fast-growing ecosystem.
“We have successfully raised 3M CHF from the world’s 3 leading digital asset investment firms; Galaxy Digital, CoinShares, and Digital Currency Group (DCG),” said Mirko Schmiedl is the Co-Founder and CEO at Staking Rewards, “the new investment will fuel our growth and positioning as the trusted data hub for the $40 billion crypto staking industry. The capital will allow us to develop a new suite of products and services catering to the staking space, including the development of investable staking index products.”
Equity funding for startups in the cryptocurrency ecosystem is not uncommon as the industry has been experiencing a steady inflow of capital into innovative platforms and projects. Riding on the impressive equity funding, TheCoinRise reported earlier this month that ConsenSys topped its market valuation by $3.2 billion following a $200 million funding round. Capital inflows have hit a record high this month as mainstream investors look to become a part of the blockchain and crypto revolution.
Positioning for New User Embrace
Many people are billed to adopt digital currencies primarily due to the possibilities of making passive income through a series of investment products on offer. Staking comes off as one of the highly sustainable avenues to offer new and old users passive income, a model that about 19 out of 20 Proof-of-Stake (PoS) protocols are already adopting.
Through the service rendering Staking Rewards has been providing, its equity partners are notably looking forward to integrating the startup’s staking products as part of their investment products to their own clients. The positioning of Staking Rewards to attract a new crop of users was also amongst the points of attraction that endeared investors to the digital currency landscape.
“One of crypto’s strongest adoption drivers will be passive income opportunities and Staking Rewards is perfectly positioned to capture a large market of those,” said Christopher Heyman, Partner, 1kx Capital.