Keyring Raises $6M Funding to Expand Crypto Compliance Platform for Institutional Access to DeFi
In Brief
Keyring raised $6 million to advance its platform, serving institutional investors in engaging with DeFi platforms in a compliant manner.
Encryption compliance platform Keyring raised $6 million in the latest funding round led by Gumi Cryptos Capital and Greenfield Capital, with participation from Motier Ventures and Kima Ventures, among other investors. The company plans to use the newly raised capital to broaden its on-chain compliance platform, serving institutional investors and protocols.
Keyring aims to assist financial institutional investors in engaging with decentralized finance (DeFi) platforms in a compliant manner by implementing measures to restrict counterparty addresses while safeguarding privacy and sensitive data through utilizing zero-knowledge (ZK) proof technology.
“Trillions of dollars are unable to access the transparency, determinism, automation and settlement advantages of blockchain technologies for financial applications due to variations in financial regulations,” said Miko Matsumura, managing partner at lead investor Gumi Cryptos Capital.
“Keyring provides these players with options to interact with verified and compliant counterparties, thus unlocking these benefits for the majority of the financial industry,” he added.
The company recently conducted a proof of concept trial with Laser Digital, the cryptocurrency-focused arm of Japanese global financial services group Nomura. This involved developing a compliance wrapper on top of Circle’s US dollar-pegged USDC stablecoin.
Global Regulatory Advances Fuel Expansion of Crypto Services in 2024
The new investment comes when regulatory bodies in major global financial centers establish guidelines for companies to engage with digital assets. This development is expected to encourage more institutions to provide cryptocurrency services.
Recently, Hong Kong’s central bank launched a regulatory sandbox for stablecoin issuers, providing them with a controlled environment to test their operations. The sandbox offers regulatory flexibility and aligns with the city’s initiative to regulate fiat-backed stablecoins, which are cryptocurrencies linked to the value of sovereign currencies, including the US or Hong Kong dollar.
Meanwhile, the United Kingdom’s financial regulator has introduced measures allowing the offering of cryptocurrency-focused exchange-traded notes (ETN) on regulated exchanges, targeting sophisticated investors. ETNs are a form of exchange-traded product typically issued by a bank or an investment manager, designed to track an underlying index or assets. The regulator stated that exchanges will be responsible for ensuring sufficient controls are in place to ensure orderly trading and provide proper protection to professional investors.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
