Infrastructure company Kiln Consensus has closed a $17.6 million funding round led by GSR and Kraken Ventures.
Staking technology provider Kiln has closed a $17.8 million funding round with participation from Consensys and Kraken Ventures. The company believes there will be “exponential” growth in demand for Ether
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Procurement of services from institutional clients in the future.
Kiln is a software-as-a-service provider focused on enterprise-level staking solutions across 16 different blockchain proof-of-stake protocols. Its infrastructure allows users to take stakes in the chain while maintaining custody of assets in specialized solutions.
A statement shared with Cointelegraph cites the growing institutionalization of cryptocurrency share as a market trend. According to Kiln, this drives the need for “validator-agnostic APIs and services” to enable multi-provider hitting.
Cointelegraph spoke with Kiln co-founder and CEO Laszlo Szabo to unpack the need for multi-layered staking services. According to Szabo, major exchanges and service providers such as Coinbase, Ledger and Binance serve an increasingly institutionalized equity market and should engage with multiple equity providers to spread operational risk:
“The legacy solution is independent stacking provider relationship management, allowing leading companies’ manufacturing and engineering teams to integrate different stacking providers into their workflows.
Integrating new payment protocols now requires custom staking and discarding transactions for each individual protocol format, as well as running an infrastructure to collect data rewards and integrating custom custodian APIs.
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This is a key reason for creating a suite of products that allow wallets, custodians and exchanges to handle multi-provider betting.
Ethereum’s recent switch to a proof-of-stake (PoS) consensus leads Sasbo to believe that demand for ETH stakes “will grow exponentially.” His firm cited data from other PoS protocols with stakes ranging from 50-80% of funds, compared to the 12.5% of the total ETH supply currently included in the Beacon Chain contract.
Kiln already serves institutional clients such as Ledger, Binance.US and GSR. The intention is to go to market with these institutions, focusing on the institutional segments including funds and banks.
Szabo also told Cointelegraph that the company is in talks with major traditional financial institutions to develop comprehensive crypto-related products and explore the stake:
“They have already passed the discovery stage and made significant progress, although the processes are longer with these types of players.
Staking Ether is an integral part of how the PoS smart contract blockchain works. Potential users have several betting options available, but a full 32 ETH is required to become a network validator and receive rewards. Everyday users who want to share a small amount of ETH can participate through pooled stakes or solutions provided by centralized exchanges.
Everyday users who want to share a small amount of ETH can participate in pooled betting or solutions offered by centralized exchanges.
