Institutions are required to place their crypto assets somewhere. And they are not going to put it on some random, or consumer-grade crypto operation. This requires more sophisticated technology. In addition, being in the European Union is going to be a significant barrier to entry for many US or Asia-based operations.
It is thus a Berlin-based digital asset custody and financial services platform
Finno, has closed a $ 22 million Series A funding round to do so.
The round was led by Balderon Capital, with existing investors Copperian, Venture Stars and Signature Ventures, as well as an undisclosed investor.
Critically, Berlin-based startup Dapper works with Lab’s Flow Protocol, NEAR and Mina, which are fast becoming the standard for crypto assets. They are going up against big players like Anchorage, Coinbase Custody, Exchanges like Bitgo, Binance and Kraken, and self-custody solutions like Ledger.
Finoa says it now has more than 250 clients, including T-Systems, CoinList such as Defy-Natives and financial institutions such as Bankhaus Sheich.
The company says it plans to become a regulated platform for institutional investors and corporations to manage their digital assets and has received an initial crypto custody license and is overseen by the German Federal Financial Supervisory Authority (BaFin) .
The company was founded in 2018 by Christopher May and Heinrich Ebbing, but the two previously worked together at McKinsey and in 2017 began working in the blockchain.
May commented: “We are proud of the establishment of Fino as Europe’s premier gateway to constitutional participation and are incredibly excited to further accelerate our development. We look forward to supporting new exciting protocols and projects, empowering innovative corporate use cases, and adding additional (decentralized) financial products and services to our platform. “
Baldwin Capital Principal Colin Hanna, who heads most of Balderton’s crypto investments, said: “Chris, Heinrich and the entire Finno team have built a deeply influential business that meets the highest levels of professionalism with radical innovation .As a custodian of digital asset private keys, Finno needs to rely both on secure management of keys and with products and services that allow its customers to fully leverage the power of core digital assets Are. The team they have assembled is uniquely positioned to do so. ”
May added: “We identified a lack of sophisticated custody and asset servicing solutions to protect and manage blockchain-based digital assets that successfully meet the needs of institutional investors. Fino is bridging this gap by providing seamless, secure and regulated access to the world of digital assets. “
“Being in the European Union requires a fundamentally different organizational setup, and becomes a very high entry for new incumbents and other players abroad. There are few that Finoa has done in the European context and therefore We now see ourselves in a leading position.