Leading data provider for staking and crypto-growth tools, Staking Rewards has raised the sum of 3 million Swiss Francs ($3.2 million), a funding round that was co-led by three of the world’s biggest asset managers in the cryptocurrency ecosystem.
Besides the lead by Galaxy Digital Holdings Ltd (TSE: GLXY), Digital Currency Group, and CoinShares, other investors including 1kx Capital, and Sygnal Ventures also participated in the funding round. With the staking industry currently valued at about $40 billion, Staking Rewards has positioned itself as the go-to resource for all industry participants. Using the capital injection, the startup says it will develop a new suite of products and services catering to the staking space, including the development of investable staking index products.
“This investment round will mark the next step for us to provide the highest quality data and research around staking, as well as building industry-leading financial products,” said Staking Rewards co-founder and Chief Executive Officer, Mirko Schmiedl in a press release.
The startup said its fundraising was oversubscribed 6x, a situation the firm said was fueled by the platform’s focused growth since its inception. Staking Rewards has grown from a team of 4 staff into 15 at present, a number it is planning to push to at least 25 by the first quarter of 2022. The platform’s pivotal role in capturing staking-related data serves more than 400,000 unique site visitors monthly, who collectively flips more than 4.7 million pages on the site.
The institutional giants who backed the funding round have also been exploring avenues to integrate staking services into their product suite. Through the infrastructure being made available by Staking Rewards, this pursuit will now be made possible.
“I have been following the Staking Rewards team since I began using their site in early 2018, and our team at CoinShares has been looking for a reputable partner to support our ambitious plans for staking related products and services. We see a great opportunity to work closely together as a partner when it comes to research, data, and product development in the staking space,” said Meltem Demirors, Chief Strategy Officer of CoinShares.
Staking Rewards Funding: Building a Gateway into the Crypto Industry
The Staking Rewards funding will serve as a pivotal boost to create a product that will serve as a gateway for people looking to make a dive into the industry. Staking provides a source of passive income for users who commit their funds for the functioning of a blockchain protocol.
According to Staking Rewards statistics, as many as 19 out of 20 largest smart-contract platforms are already based on some sort of Proof-of-Stake (PoS) consensus mechanism, with the $500 billion Ethereum network planning to migrate to Proof-of-Stake in the next year. This solidifies the outlook of the staking industry which has notably grown more than 1,550% in the last 12 months.
The additional investment product Staking Rewards is planning to build will further serve as a catalyst for growth for the industry.
“One of crypto’s strongest adoption drivers will be passive income opportunities and Staking Rewards is perfectly positioned to capture a large market of those,” said Christopher Heyman, Partner, 1kx Capital.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.