Prime Trust Raises $107M With Eyes on Crypto IRA, Tokenized Asset Products

The Las Vegas company is going into build mode, bear market be damned.

AccessTimeIconJun 22, 2022 at 1:00 p.m. UTC
Updated Jun 22, 2022 at 3:29 p.m. UTC

Danny is CoinDesk's deputy business editor. He owns BTC, ETH and SOL.

Crypto infrastructure company Prime Trust said Wednesday it raised $107 million in Series B funding as it looks to broaden its product categories, including crypto retirement products and asset tokenization.

The Las Vegas-based company has already forged a handful of deals that bring crypto to retirement investors, most notably via Swan Bitcoin’s bitcoin individual retirement account (IRA). With more competitors including Fidelity making access to crypto retirement investing easier, Prime Trust’s effort is slated to accelerate with its bear market cash in hand.

Chief Financial Officer Rodrigo Vicuna declined to comment on the company’s valuation. He said the round has been in the works since late last year; some late-stage stragglers might even write checks in the next month or so. Prime Trust last raised $65 million in its July 2021 Series A.

The Series B comes as markets lurch into what may likely be a bona fide recession, crypto’s first. Sluggish user growth has forced other companies to pare back their spending or even slash headcount, making Prime Trust’s plan – grow, invest, hire – a little jarring.

Vicuna offered the adage of bear markets being high time to build. When asked if Prime Trust was stocking an acquisition war chest a la FTX, he demurred: “As a CFO, you can never say no to” the right opportunity.

“This is really a strategic investment to build out the critical infrastructure that helps us scale for our clients,” he said.

Prime Trust works behind the scenes to help customer-facing companies, such as crypto exchanges and non-fungible token (NFT) marketplaces, move and store their assets.

What constitutes a moveable, storable crypto asset is growing, according to Vicuna. He said the company is anticipating a surge in tokenized assets, like securities, real estate and NFTs, that can be represented and transferred across chains.

“The bulge-bracket banks really see this as the future, and so we’re building out” tokenized asset capabilities, Vicuna said. ”Really dynamic custodians can look at assets and say, ‘Yeah, we can safeguard that.’”

Prime Trust has been thinking about tokenized securities since at least its 2018 acquisition of the equity crowdfunding platform FundAmerca. Prime Trust has pitched it as an on-ramp and distribution vehicle for cash-hungry companies looking to access better liquidity for the trading of their private shares. It’s facilitated $3 billion in capital raises, according to the website.

“It's a smaller part of the business that we think will be more meaningful,” Vicuna said.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information 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 strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Danny is CoinDesk's deputy business editor. He owns BTC, ETH and SOL.

CoinDesk - Unknown

Danny is CoinDesk's deputy business editor. He owns BTC, ETH and SOL.

Trending

1
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown
3
CoinDesk - Unknown
A New Chapter of Web3: Solana Unveils Smartphone ‘Saga’; Moody’s Downgrades Coinbase

The most valuable crypto stories for Friday, June 24, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
How Are Institutions and Companies Investing in Crypto?

From putting bitcoin on their balance sheets to setting up shop in the metaverse, the ways brands and institutions are investing in cryptocurrencies continues to expand.

CoinDesk - Unknown