Unchained Capital, a crypto-finance company that lends cash to long-term crypto-investors, announced it has closed a $2,995,000 seed round of venture capital. The funding will go toward expanding Unchained Capital’s team and innovating its proprietary financial services and wealth management offerings.
A number of strategic investors participated in this venture round, including Michael Komaransky, formerly of Cumberland Mining; Brian Spaly, prolific angel investor and co-founder of Bonobos and Trunk Club; Mike W. Erwin and Whurley of Ecliptic Capital; and Ezra Galston of Starting Line, an early venture investor in the crypto sector. In addition to making investments in the seed round, Komaransky, Erwin and Galston will join Unchained Capital’s board.
The new investors combine with a stellar management team to create an unparalleled, talented group to drive innovation and a premium offering within the emerging multi-billion dollar crypto-wealth management market.
“Crypto-finance is redefining the concept of the traditional long-term investment thesis,” said Mike W. Erwin, Founder of Ecliptic Capital, which provides a metric-driven, transparent investment process through its partnership with Optimal Symmetry, the Fund’s manager. “Unchained Capital is building the financial infrastructure for the wealth management of tomorrow, yet available for savvy crypto investors today.”
Availability of Ethereum-Collateralized Loan Capabilities
Unchained Capital has expanded its lending capabilities by announcing Ethereum-collateralized (ETH) loans in addition to its previous ability to lend against Bitcoin (BTC). By accepting ETH and BTC, individuals and businesses who want both to hold crypto-coins and to access immediate fiat funds have greater choice.
Using an open-source smart contract for the cold storage of collateral funds, Unchained Capital’s vault requires multiple signatures and hardware wallets for maximum security. With a $150,000 bug bounty running for two months and a complete security audit by Hosho, a leading blockchain security firm, no other crypto-backed lender offers a more thorough, comprehensive custody and security solution.
Crypto-collateralized loans have wide-ranging applications: anything that requires USD can now be purchased with an Ethereum-collateralized loan. For example, crypto-enthusiasts looking to diversify USD-driven investments such as real estate can now drive transactions with ETH. Startups that have completed an ICO can access USD while maintaining their ETH holdings. Wherever cryptocurrency is locked away, Unchained Capital aims to free it.
Existing customers can access Unchained Capital’s new capabilities automatically, no longer having to convert ETH holdings in their portfolio to BTC to access USD loans.