Cashmere, a company that offers enterprise wallet management for users of the Solana blockchain, closed a $3 million seed funding round Monday that valued the firm at $30 million.
Investors in the round included crypto venture-capital firms Coinbase Ventures and FBG Capital, as well as startup incubator YCombinator.
Cashmere allows firms to use multi-signature signing to jointly control their company wallets. In a multisig signing scheme, several wallets need to approve a transaction before the funds can be moved out of Cashmere. That removes a single point of failure, resulting in a safer self-custody option, according to the company.
The project’s latest fundraising comes as wallet security on Solana has become a major concern. Last week a hacker accessed more than 8,000 Solana wallets, draining over $5 million in funds.
“We built Cashmere to offer Solana users institutional-grade security without having to rely on cold storage solutions,” said Cashmere co-founder Shashank Khanna. Cold storage means using an external drive. Although that can be safer than internet-based hot storage, it may be impractical for businesses or institutional treasuries that are typically managed by a team.
“Soon after our launch six months ago, we saw big name startups like [non-fungible token] marketplace OpenSea organically sign up for our product," Khanna said. He said Cashmere’s clients also include crypto hedge funds, NFT projects and gaming companies.
In November 2021, Cashmere raised a $650,000 pre-seed funding round that was led by Wonder Ventures and Notation Capital.
Other participants in the new funding round include Volt Capital, Project Serum, Global Founders Capital, CreditEase and Soma Capital.
Cashmere co-founder Charlotte McGinn told CoinDesk the company plans to use the funds to hire more engineers and launch a premium product for institutions later this year.
“Crypto began as a space of highly technical people who are comfortable with encryption and hardware wallets,” McGinn. “However, as it’s gained more mainstream adoption, we’re seeing a hugely unmet need for secure solutions for less technical people.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.