Kiln, a Paris-based Ethereum staking infrastructure provider, has successfully concluded a funding round, raising $17 million. This financial injection aims to facilitate the expansion of Kiln’s institutional-grade services on an international scale and bolster the development of decentralized finance (DeFi) reward models.
The funding round was spearheaded by 1kx and saw participation from prominent investors, including Crypto.com, IOSG, Wintermute Ventures, KXVC, and LBank. Additionally, existing investors such as Kraken Ventures, GSR, and Avon Ventures, also joined in contributing to this funding effort.
Kiln’s Future Plans
Kiln has outlined its strategic plans for utilizing the newly acquired capital, which includes:
1. Global Expansion: Kiln intends to support its global expansion initiatives, with a particular focus on the Asia-Pacific (APAC) region. The company has already established a regional headquarters in Singapore in the first quarter (Q1) of this year.
2. Product Development: The funding will contribute to product development efforts, emphasizing the creation of additional reward mechanisms within the decentralized finance (DeFi) space.
3. Inclusivity Mission: Kiln aims to maintain its mission of maximum inclusivity by further expanding access to value creation in the digital asset ecosystem. This is evident through partnerships and integrations with Ledger Live, Crypto.com, Coinbase, and others, which have enabled pooled staking services, allowing every ETH holder to participate in staking regardless of the amount of ETH they hold.
With this latest funding round, Kiln has raised a total of $35 million from a diverse group of investors, including Illuminate Financial, Kraken Ventures, Avon Ventures, ConsenSys, GSR, Leadblock Partners, Sparkle Ventures, XBTO, and participation from previous investors such as 3KVC, Blue Yard Capital, SV Angel, and Alven, among others.
While Kiln did not disclose its valuation in this funding round, the platform has experienced substantial growth, with its staked assets under management surging to $4.2 billion. This impressive growth represents a more than fivefold increase in assets managed during the year 2023. Kiln has been actively integrating with various custody solutions, wallets, and exchanges over the past year to enhance its services.
Laszlo Szabo, co-founder and CEO of Kiln, expressed the company’s mission to democratize value creation in the digital asset ecosystem and provide easy access to rewards for millions of users through their platform. He also mentioned Kiln’s plans for expansion, including the establishment of an office in Singapore.
In addition to expansion efforts, the funding will support ongoing product development, with a focus on integrating additional reward mechanisms within the DeFi space. Kiln is also working on a DeFi product that enables its integrator customers, such as wallets, exchanges, and custodians, to capitalize on stablecoin reward opportunities, highlighting the platform’s commitment to innovation and value creation in the crypto space.
Kiln Is The Largest Ethereum Validator Node Operator with Over $3.1 Billion in Staked Assets
Kiln’s white-label staking technology platform has proven to be a unifying force for stakers, node operators, and integrators across multiple applications. Over the past year, Kiln has experienced steady growth, establishing itself as one of the leading staking platforms in the market. It currently holds the distinction of being the largest operator of Ethereum validator nodes, contributing to approximately 4% of the Ethereum network.
While Kiln extends support to various proof-of-stake blockchains, the majority of its staked assets are on the Ethereum network, amounting to over $3.1 billion. The platform utilizes specialized smart contracts that allow users to stake smaller amounts and pool their stakes collectively to meet the 32 ETH minimum required for native ether staking. This approach provides an alternative to more traditional staking options.
In 2022, Kiln successfully completed a $5 million funding round, with participation from notable investors such as Shana Fisher, Managing Partner at Third Kind, and Andreessen Horowitz board partner, as well as SV Angel, Blue Yard, Alven, and Kima Ventures, further solidifying its position in the staking ecosystem.
Notably, the funds were allocated for several key purposes: recruiting new talent, improving its technology infrastructure, and expanding its service offerings. This service enables fintech, cryptocurrency companies, and financial institutions to facilitate one-click staking of cryptocurrency assets for their customers or directly stake their crypto assets with Kiln.
In September, Coinbase Cloud successfully integrated Kiln’s on-chain staking protocol, enabling users to engage in native ether staking without the requirement of holding a minimum of 32 ETH. This integration effectively removed a significant barrier to entry for numerous potential participants.
Kiln has ambitious plans to enhance the compatibility of its technology platform. This includes extending support for additional consensus models and diversifying DeFi revenue streams beyond traditional staking. Future developments may see Kiln’s infrastructure encompass delegated proof-of-stake networks such as Cardano and reward-bearing liquidity pools across the Ethereum ecosystem.
