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.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

The Department of Justice and Commodity Futures Trading Commission announced back-to-back lawsuits against KuCoin Tuesday

article-image

Judge Failla found that Coinbase didn’t operate as an unregistered broker in offering its wallet service

article-image

A fund by Laser Digital offers investors exposure to the Polygon network, while a new 21Shares ETP focuses on staking rewards from Toncoin

article-image

Sponsored

The TRON network’s integration into Dune brings a wealth of data and insights to the fingertips of users

article-image

A BTC futures fund offered by Hashdex and Tidal Investments has gotten regulatory clearance to hold bitcoin directly

article-image

At launch, Chain Signatures will be compatible with Bitcoin, Ethereum and Cosmos network chains, as well as DogeCoin and XRP Ledger