Digital Asset Infrastructure Provider PolySign Raises $53m06.28.2022
PolySign, Inc., a financial technology company providing blockchain-enabled digital asset infrastructure for institutional investors, announces the close of its $53M Series C funding round with participation by Cowen Digital, Brevan Howard, GSR and more. Beyond the funding, PolySign also secured a $25M credit facility with Boathouse Capital.
Over the past year since PolySign’s Series B raise in May 2021, it has become clear that an institutional-level custody solution is necessary from both a security and regulatory perspective. CEO Jack McDonald and the team have actively worked to attain forerunner status in the space and provide clients with the next-generation services needed. The recent acquisition of MG Stover accelerates the company’s product development plan and paves the way for future service enhancements focused on institutional investors and asset managers.
— Jack McDonald (@_JackMcDonald_) June 27, 2022
Standard Custody & Trust Company, a next-generation NYDFS regulated custodian and subsidiary of PolySign, offers a security program that combines proprietary blockchain technology, end-to-end encryption, and distributed trust protocols to protect private keys. The platform’s integrated escrow solution enables investors to buy and sell digital assets directly from custody, reducing the risk of external transfers and inefficient transactions between multiple accounts and different providers. Standard Custody facilitates 24/7 investor market access with improved security and capital efficiency.
“While crypto has captured immense interest from retail investors, the role that institutional investors carry in shaping the future of the digital asset space cannot be understated. A better platform for custody and fund administration is necessary to serve their unique needs and help expand the market,” said Jack McDonald, CEO of PolySign. “Market volatility has often obscured the biggest hurdle to institutional involvement – security. With this latest funding round and support from major institutions, as well as our recent acquisition of MG Stover, PolySign’s solutions are making the world of digital assets more attractive to institutional investors and accelerating the transition from traditional finance to decentralized finance.”
Drew Forman, Head of Cowen Digital, commented: “Cowen Digital is proud to be part of PolySign’s latest investment round. As a trusted partner, PolySign already forms a key component of Cowen Digital’s trade execution and custody ecosystem. This investment continues to put both firms at the forefront in serving the growing demand from institutional investors for safe, secure and seamless access to digital assets.”
“We are incredibly excited to support PolySign and absolutely thrilled with the company’s recent acquisition of MG Stover. PolySign, founded four years ago, is providing foundational and battle tested infrastructure across custody and administration services and is run by a best-in-class team,” said Colleen Sullivan, Co-Head of Private Investments at Brevan Howard Digital. “In a time where trust in counterparties, embracing regulation, and understanding crypto and market risk are rightfully heightened, we are proud to support outstanding operators like Jack McDonald and Matt Stover, who are building products and services that are necessary to take our industry to the next level.”
Regulators are likely to separate custody from other crypto exchange activities.
Both sell side and buy side believe that fully regulated custody is important/extremely important.
Anchorage Digital is the first US federally chartered digital asset bank.
The platform is live in the U.S. with select clients.
Bertrand was most recently Head of Derivatives and Commodities at Borsa Italiana.