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Cashmere uses the multi-signature signing feature to transfer funds combining the flexibility of hot wallets and the storage security of cold wallets.
Although funding in the crypto space has been relatively low this year, some new projects continue to attract fresh investments even now. On Monday, August 8, Cashmere closed $3 million in funding at a company valuation of more than $30 million. Cashmere is a company that offers enterprise wallet management for users on the Solana blockchain network. Some of the popular crypto venture-capital firms participated in the funding process. This includes the likes of Coinbase Ventures, FBG Capital, as well as startup incubator YCombinator.
Cashmere focuses on helping people to store their crypto securely. It will protect the cryptocurrencies even after hot wallets like Slope and Phantom are compromised. The latest funding comes at a time when wallet security on Solana is becoming a matter of major concern. Last week, hackers stole over $5 million after intruding into more than 8,000 Solana wallets. Cashmere co-founder Shashank Khanna said:
“We built Cashmere to offer Solana users institutional-grade security without having to rely on cold storage solutions. Soon after our launch six months ago, we saw big name startups like [non-fungible token] marketplace OpenSea organically sign up for our product”.
Cashmere takes a different approach from cold storage which means saving your cryptos on an external drive. Cashmere believes that although it’s more secure than hot wallets, it’s impractical for businesses and institutional players.
Cashmere allows firms to use multi-signature signing to let them control their company wallets. In this type of facility, several wallets shave to approve the transaction after which they can move funds out of Cashmere. This solves both purposes – offering a safer self-custody option and removing a single point of failure.
Khanna said that Cashmere’s current customers include crypto hedge funds, gaming companies, and NFT projects.
Cashmere’s Road to Success
Over the last year, Cashmere has made significant growth in the crypto space. During the crypto market peak of November 2021, Cashmere raised $650,000 in pre-seed funding.
Some of the participants during that funding included Wonder Ventures, Notation Capital, Project Serum, Volt Capital, CreditEase, Global Founders Capital, and Soma Capital.
Speaking to CoinDesk, Cashmere co-founder Charlotte McGinn said that the company is planning to hire more engineers. They are also planning to bring an institutional-grade product to the market later this year. McGinn said:
“Crypto began as a space of highly technical people who are comfortable with encryption and hardware wallets. However, as it’s gained more mainstream adoption, we’re seeing a hugely unmet need for secure solutions for less technical people.”
Read other crypto-related news in Coinspeaker.