Blockchain.com Raises $120 Million - Crypto Wallet & Exchange News

Blockchain.com Secures $120 Million in Funding

Blockchain.com has recently announced the completion of a $120 million funding round. The company is a prominent developer within the cryptocurrency space, offering a widely-used cryptocurrency wallet alongside an exchange platform and blockchain explorer.

Investment Details

This funding round saw participation from a diverse group of investors. These include Moore Strategic Ventures, Kyle Bass, Access Industries, Rovida Advisors, Lightspeed Venture Partners, GV, Lakestar, Eldridge, and several other unnamed entities. To date, the company has successfully raised over $190 million in funding since its inception.

From Explorer to Comprehensive Platform

Initially founded as Blockchain.info, the company began its journey as a blockchain explorer. This tool allows users to input a transaction hash from the Bitcoin blockchain to retrieve detailed information. This includes the transaction amount, associated fees, confirmation status, and the wallet addresses of both the sender and receiver.

Over time, blockchain explorers have expanded their capabilities to support multiple blockchains and a wider range of data types.

Wallet Solutions: Custodial vs. Non-Custodial

Blockchain.com subsequently developed an open-source Bitcoin wallet, which now accommodates a broader spectrum of cryptocurrencies and stablecoins. Notably, the company’s wallet is noncustodial, granting users complete control over their private keys.

Other examples of noncustodial wallets include Coinbase Wallet, Argent, and ZenGo.

Conversely, many cryptocurrency users opt to purchase Bitcoin through exchanges and maintain their holdings within the exchange's account. This represents a custodial wallet arrangement, where the exchange assumes responsibility for the security of the user’s crypto assets.

Examples of custodial wallets are Coinbase.com, Binance, and Kraken.

Advantages and Risks of Each Approach

Each wallet solution presents its own set of advantages and disadvantages. A custodial wallet is vulnerable to hacks targeting the exchange or phishing attacks compromising user login credentials.

Losing the private key associated with a noncustodial wallet results in permanent loss of access to the funds. However, Blockchain.com and similar providers have implemented methods to mitigate this risk through data backups.

Expanding Services

More recently, Blockchain.com launched its own exchange to facilitate easier asset trading for wallet users. The company also now provides services tailored to institutional investors seeking entry into the cryptocurrency market.

These services encompass order execution, secure custody solutions, lending options, and over-the-counter (OTC) transactions.

Key Metrics

Blockchain.com has also revealed significant usage statistics. A total of 65 million wallets have been created through the company’s website and mobile applications.

Furthermore, since 2012, 28% of all Bitcoin transactions have been either sent from or received by a wallet managed by Blockchain.com.