Account Labs, a prominent player in the crypto wallet space, has raised $7.7 million in a recent Series Pre-A funding round. The investment round was led by investors from the web3 and established internet tech sectors, including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. The funding comes at a time when the collapse of the FTX empire has highlighted the risks associated with using centralized trading platforms and has led to a surge in demand for self-custodial wallets.
Key Takeaway
Account Labs secures $7.7 million in funding to meet the growing demand for self-custodial wallets in the wake of FTX’s collapse.
The Rise of Self-Custodial Wallets
Self-custodial wallets, as the name suggests, provide users with full control over their digital assets. The fall of FTX and its affiliated companies due to their mishandling of customer funds has highlighted the need for decentralized wallet solutions. Despite the recent downturn in the crypto market, various wallet providers are still competing to attract users.
Account Labs: Consolidating the Wallet Space
Amidst the consolidation trend in the crypto wallet space, Account Labs has emerged as a noteworthy player. The company recently merged with hardware wallet provider Keystone Account Labs and account abstraction wallet builder UniPass, resulting in the formation of Account Labs. The funding received will be used to launch UniPass, a consumer-focused self-custodial wallet.
UniPass: Enabling Cross-Border Payments in Southeast Asia
UniPass, running on the Polygon blockchain network, aims to target Filipino freelance workers initially. The wallet facilitates instant and low-cost transfers for users who already hold stablecoins. Through a partnership with a licensed third-party vendor in the Philippines, funds can be converted into fiat and deposited into the popular domestic e-wallet GCash. UniPass is expected to bring much-needed efficiency to the remittance market in the Philippines, currently plagued by red tape and high fees.
“Payments are still one of the untapped segments of Web3. UniPass’ wallet looks to be a great attempt at the payments use case,” said Sandeep Nailwal, co-founder of Polygon Network.
Challenging Web2 Payments
Account Labs has set its sights on challenging traditional payment giants like PayPal, Wise, and Stripe. By offering a user-friendly interface and greater control over funds, the company aims to revolutionize online payments. While UniPass currently focuses on user growth and does not charge transaction fees, potential future monetization strategies include ad-based incentives for users.
“We want to challenge web2 payments. We want to challenge PayPal, Wise, and Stripe,” said Lixin Liu, CEO at Account Labs.
