2023 has seen a significant decline in VC investments in crypto companies, with a 68% drop compared to 2022. Despite this, French crypto startup Kiln has managed to secure a $17 million funding round in December 2023, led by 1kx with participation from Crypto.com, IOSG, Wintermute Ventures, KXVC, and LBank, along with additional investment from existing backers.
Key Takeaway
Kiln, a French crypto startup, has secured a rare
7 million funding round, showcasing its success in providing white-label infrastructure products for staking services. The company’s impressive growth and position as the largest operator of validator nodes on the Ethereum blockchain highlight its significance in the crypto space.
Kiln’s Niche in the Crypto Space
Kiln has carved a niche for itself by focusing on white-label infrastructure products. Notable industry players such as Ledger, Crypto.com, and Coinbase rely on Kiln’s technology for their pooled staking services in their non-custodial wallets.
The Significance of Staking
Staking involves locking crypto assets in a blockchain to secure its transactions, with participants earning rewards over time. Kiln provides a suite of smart contracts that facilitate staking, allowing users to participate in staking pools and start earning rewards with a simple transaction.
Kiln’s Impressive Growth
Kiln has seen remarkable growth, currently managing 1,168,288 staked ETH, representing nearly $3 billion in ETH assets under management. Over the past year, Kiln has increased its “stake under management” by 5x.
Position in the Ethereum Ecosystem
Kiln is the largest operator of validator nodes on the Ethereum blockchain, holding a bit more than 4% of market share according to Rated data. This approach ensures a high level of security and financial performance, positioning Kiln as a legitimate company with strategic partners such as the Ethereum Foundation.
Future Plans and Expansion
Kiln’s co-founder and CEO, Laszlo Szabo, expressed excitement about the company’s upcoming expansion plans, including the establishment of an office in Singapore. The company has raised a total of $35 million since its inception and generates revenue through commissions on staking rewards, which is expected to grow in parallel with its total assets under management.
