Knøx Raises $6.2 Million to Secure Digital Asset Custody for Institutions

Funding Boost for Digital Custody

Montreal’s very own digital asset custodian, Knøx, is on a funding high after securing a whopping $6.2 million (or 8.25 million CAD) in a seed round. This infusion of funds is set to elevate their crypto custody services specifically tailored for institutional customers and fiduciaries. And who’s behind this financial boost? The San Francisco-based venture capital firm, Initialized Capital, is at the forefront, with notable backing from Fidelity and other venture enthusiasts like iNovia.

Protecting Assets: A Serious Matter

Now, let’s get to the meat of the matter. In the turbulent waters of digital assets, protecting customers against losses is a top priority, and Knøx has got this covered. Their suite of products is primarily focused on asset management firms, liquidity providers, and exchanges, making sure that investors sleep a little more soundly at night.

Garry Tan, a managing partner at Initialized Capital, highlighted the industry’s growing demand for comprehensive insurance policies that actually work when it comes to digital asset custody. It appears that simply having a marketing buzz around insurance policies just won’t cut it any longer.

CEO’s Insight on Insurance Needs

Alex Daskalov, Knøx’s co-founder and CEO, voiced an important concern: “Entities who have their digital assets managed by a third party deserve the right to insurance.” Daskalov elaborated that often times, these policies are just for show instead of providing real risk transfer. Knøx’s insurance program aims to address this issue, ensuring that fiduciaries can uphold their obligations without losing sleep over potential losses.

Initialized Capital’s Diverse Backing

Initialized Capital isn’t just throwing money at Knøx — they have a track record of supporting innovative blockchain projects! Back in July, they led a $3.75 million seed round for Horizon Blockchain Games, a blockchain-powered video game studio. And let’s not forget their involvement with other major investors like Polychain Capital and Digital Currency Group.

The Bigger Picture

This spring, Initialized Capital also teamed up with the likes of Pantera Capital, Foundation Capital, and Y Combinator to back Sparkswap — a startup aiming to create a decentralized exchange leveraging the Bitcoin Lightning Network. Clearly, Initialized Capital isn’t afraid to back big ideas. With all this momentum, it looks like Knøx might just be the custody hero the crypto world needs!