Crypto self-custody startup Account Labs recently closed a $7.7 million Series Pre-A funding round, highlighting rising demand for secure and reliable digital asset storage solutions. The investment comes as the crypto market increasingly eyes self-custody options following the spectacular collapse of centralized exchange FTX.
The funding round was led by major crypto industry players including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. It arrives at an opportune moment as consumers flock to self-custody wallets granting them sole control of assets without third-party risks.
FTX’s failure has severely damaged trust in centralized trading platforms and custodians. Users now recognize the inherent perils of outsourcing asset security. Self-hosted wallets are emerging as a preferred alternative, removing reliance on institutions vulnerable to hacking, mismanagement, and other threats.
Account Labs was formed through a May 2022 merger between hardware wallet maker Keystone and account abstraction wallet builder UniPass. The unified company now provides a robust self-custody solution blending hardware security with abstracted account convenience.
The fresh capital will support the launching of Account Labs’ new consumer-focused wallet, UniPass. Built on the Polygon network known for low fees, UniPass aims to deliver a user-friendly and secure cross-border payment solution. Its initial target market is Filipino freelance workers who often struggle with slow, expensive traditional remittance options.
By leveraging crypto rails, UniPass can facilitate faster and dramatically cheaper cross-border salary payments. The wallet uses a licensed local partner to convert crypto to fiat for deposit into the popular Philippine e-wallet GCash. Total fees amount to around just 1% of the transaction value.
CEO Lixin Liu told TechCrunch that UniPass seeks to challenge legacy payments giants like PayPal, Wise, and Stripe by focusing on frictionless user experience rather than revenue. The company’s priority is acquiring a substantial user base before monetizing.
Account Labs’ timely funding validates the expanding market for reliable self-custody tools in the wake of centralized failures. As the crypto ecosystem evolves, expect more startups to respond with innovative custody solutions that empower users while rebuilding lost trust.
With its seasoned leadership and ripe market opportunity, Account Labs is poised to disrupt traditional remittance and payments if it can deliver on its promises of security, affordability, and ease of use. However, the crowded digital asset space remains highly dynamic. Account Labs must stay nimble and user-focused to sustain its momentum. If crypto is to reach its full potential, it needs exactly this type of forward-thinking startup redefining what secure decentralization can enable.
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