PolySign Nets $53M To Improve Services for Institutions, Asset Managers

Cowen Digital, Brevan Howard and GSR among the firms backing the blockchain-focused fintech company

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • PolySign plans to launch settlement layer PolyNet in the first quarter of 2023
  • The funding round follows the company’s raise of $53 million in May 2021

Blockchain infrastructure provider PolySign has raised an additional $53 million as it seeks to eventually offer instant and automatic settlements for a range of cryptoassets.

Participants in the round included hedge fund Brevan Howard, crypto market maker GSR and Cowen Digital. The latter business, which financial services firm Cowen launched in March, offers custody solutions via Cowen’s partnership with PolySign subsidiary Standard Custody and Trust Company.

The capital was primarily used for the acquisition of fund administrator MG Stover, which the firm revealed in April. The purchase of the company, which had $40 billion in digital assets under administration at the time, accelerates the company’s product development service enhancements for institutional investors and asset managers, PolySign said in a statement.

PolySign CEO Jack McDonald told Blockworks the Series C round funding would also enable the company to add engineers, accountants and client service teams, as well as accelerate its technology spend.

In the short term, PolySign seeks to continue focusing on its custody offerings through Standard Custody and Trust Company as well as its fund administration business through MG Stover. Its third core product, McDonald said, is PolyNet, a settlement layer that would offer instant and automatic settlement for a range of assets. PolySign expects to launch the latter offering in the first quarter of next year.

PolySign has also secured a $25 million credit facility with Boathouse Capital, it said Tuesday.

Emphasizing the importance of institutional investors in the digital asset space, McDonald said in a statement, “A better platform for custody and fund administration is necessary to serve their unique needs and help expand the market.”

The funding round follows PolySign’s raise of $53 million in May 2021. Cowen led that Series B round with a $25 million strategic investment and was joined by Blockchain.com, Race Capital, Sandia Holdings and PilotRock Investments.

McDonald declined to comment on PolySign’s valuations after each round, but according to private-markets data provider Pitchbook, the latest raise pushed the firm’s valuation over $500 million.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

A tumultuous presidential campaign comes to an end

article-image

Republican challenger Bernie Moreno captured the industry’s attention when he went up against a key member of the so-called “anti-crypto army”

article-image

Swan Bitcoin managing director John Haar is among those expecting that the election may only have a short-term impact on crypto markets

article-image

As part of the deal, Arcium will take over Inpher’s core team and technology: Lightspeed exclusive

article-image

Platforms like Polymarket and Drift’s BET show higher probabilities for a Trump victory, reflecting current market sentiments

article-image

While DAOs promote transparency and community involvement, underlying centralized mechanisms reveal the challenges in achieving full decentralization