Kiln Announces €17 Million in Funding to Expand Staking Offering
- Fundraising News
- 28.11.2022 10:25 am
Today, Kiln announced the close of a €17 million financing round to expand their market-leading staking infrastructure product range. Kiln, the leading enterprise-grade staking technology provider, with over $500 million of assets staked under management, received funding from Illuminate Financial with participation by a number of leading crypto investing groups including Consensys, GSR, Kraken Ventures, Leadblock Partners, Sparkle Ventures, XBTO and renewed participation from existing investors 3KVC, Blue Yard Capital, SV Angel and Alven among others.
Kiln believes that the staking market is becoming institutionalized and must move beyond running validators to meet the growing customer need to spread risk. This means creating validator-agnostic APIs and services to enable multi-provider staking. This in turn enables digital assets to be staked wherever they are held, for wallets, custodians, and exchanges. As the industry evolves and the need to integrate multiple staking players proves real, Kiln is in an ideal position to play the aggregator role and accelerate it.
Following the Ethereum network’s transition to a Proof of Stake (PoS) consensus (The Merge) in September, which significantly de-risked the protocol roadmap, Kiln predicts the demand for staking ETH to grow exponentially. Currently, only 12.5% of ETH supply is staked, compared to 50-80% for other PoS assets. Plus, with an annual percentage yield on ETH in the 6-7% range since the Merge, it offers an attractive return-rate for investors.
Staking is the Web3 industry’s native yield: the yield comes from helping secure the blockchain (validating and proposing blocks), and there is no counterparty risk as in lending, or when dealing with a third-party intermediary such as a centralised exchange.
Laszlo Szabo - Co-Founder & CEO at Kiln, said: “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. At Kiln, we believe it is critical to provide enterprise-grade infrastructure to institutional users, which in turn enables our customers to create new opportunities for their users. We thank our existing and new investors for their partnership. The Kiln team couldn't be more excited about this next stage of building out a world-class staking stack.”
The funding, which includes €17 Million in Series A, will be used to add new features to Kiln’s industry-leading product range. Kiln already offers the largest product range dedicated to staking on the market with its focus as a technology provider delivering a simple and validator-agnostic staking stack. This includes:
Kiln Connect, which provides a single SDK to integrate staking, rewards data, and your custodian on all major PoS blockchains
Kiln On-Chain, which provides smart contracts for seamless ETH staking, any amount of ETH and automated rewards management
Kiln Dashboard, which provides a 1-click staking dashboard, administration interface, reporting and data exporting
Kiln Validators, a suite of dedicated or shared validators, with enterprise-grade SLAs, deployed on our multi-cloud Kubernetes infrastructure
Kiln’s customers include industry-leading companies such as Binance US, GSR and Ledger.
Rezso Szabo, Partner at Illuminate Financial, said: "We are witnessing a once-in-a-generation change that will catalyze the institutionalisation of Digital Assets. Sophisticated users and institutions need enterprise-grade infrastructure. As a thesis-driven investor backed by traditional financial institutions, we believe the Kiln team has demonstrated they can build key infrastructure that is critical for both digital assets and native institutions and will also serve as the future rails for financial services infrastructure. We are excited to partner with such a high-calibre team, who are on a mission to raise the bar in B2B infrastructure for the whole ecosystem."
Ciaran O'Leary, Co-Founder and General Partner of BlueYard Capital, added: “Staking is going to be one of the core fabrics of the entire crypto industry. Kiln’s robust, scalable and safe solutions provide an important fabric for large pools of capital to participate in the core functioning of crypto networks and to generate novel forms of yield. We are excited that Kiln is at the forefront of this new market.”
Benoît Bosc, GSR Global Head of Product, said: “Having used Kiln’s infrastructure to stake our own treasury and in the future to offer to our clients, our company’s missions are perfectly aligned. We are delighted to be able to participate in the next stage of Kiln’s development and to contribute to making staking easier and more accessible to everyone.”
Kiln’s unique team is made up of globally recognized experts in the areas of SaaS, blockchain infrastructure and smart contracts. The company is led by its three co-founders: CEO Laszlo Szabo, a serial entrepreneur who was previously the co-founder of tech recruitment firm Skill Hunter and has been accelerating Web3 adoption since 2017, CPO Ernest Oppetit, a former product manager at Improbable and Qubit; and COO Thomas de Phuoc, who was previously the Country Lead for France at Circle.
Kiln comprises industry leaders including Duncan Hoffman, VP Revenue, who previously led the EMEA region for Chainalysis as General Manager and scaled the business through years of growth that led to an $8.6B valuation. Duncan helped establish Chainalysis as the largest SaaS company in the Web3 industry and a market-leading solution for cryptocurrency compliance and investigation use cases to help build trust in blockchains.