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Figment will deploy these funds towards building robust infrastructure offering yield on digital tokens and other assets. Besides, it also p[lans to diversify the breadth of its services.
On Monday, August 16, blockchain infrastructure provider Figment announced a $50 million fundraise in Series B funding round led by institutional giants like Senator Investment Group and Liberty City Ventures.
This is also the largest funding round for any crypto staking service provider. Besides, other well-known players in the found round were Anchorage Digital, Galaxy Digital, 40 North, Finality Capital Partners, and others.
Figment said that it will use these funds towards diversifying the breadth of services. Besides, part of the fundraising will also go towards increasing the employee base. Figment adds that the funding round solidifies its role in building Web 3 applications.
It will also help them to build back-end systems and infrastructure offering yield on digital tokens and other assets. In short, Figment will have greater participation in the rapidly emerging Proof-of-Stake (PoS) industry. Commenting on the development, Figment CEO Lorien Gabel said:
“This funding round marks the start of a new chapter at Figment that aligns with the evolution of the industry. PoS has gone from proof of concept to mainstream and is being adopted by investors and developers at a massive scale.
Our 100+ institutional clients and billions in AUM is just the beginning for us. Our belief is that the majority of value and data will be exchanged, settled, and stored on PoS blockchains. We will continue to make this space more accessible and approachable to the next generation of Web 3 investors and developers. In doing so, we believe Figment solidifies itself as one of the most well-established and trusted platforms executing on this mission.”
The Rise of PoS Industry and Growth of Figment
Many blockchain players are now moving to the Proof-of-Stake (PoS) consensus model. The PoS model offers a lower entry barrier to new players in comparison to the PoW counterpart. The development around PoS models has been on a fast track in the last 2-3 years.
Not only that, but PoS is also “energy-efficient, accessible, and democratic form of building and reaching consensus”. Market analysts believe that by 2025, the staking industry could become a $40 billion industry in size.
Experts believe that the growth of the PoS sector will drive further institutional interest in the crypto space. Just as the PoS industry grows, Figment also has been keeping pace with its growth.
Figment already turned profitable back in 2019. Furthermore, it has experienced a massive 20x growth quarter over quarter. The Figment platform supports 40+ networks as of data and has over $7 billion in staked digital assets. Besides, it serves more than 100 institutional clients. In the official announcement Figment notes:
Our enterprise-grade infrastructure, SLAs, and slashing insurance allow our clients to participate in PoS networks safely and securely across a growing range of networks that support the diverse ecosystems being built above them.
Apart from expanding its network base, Figment is also working on a vertical expansion. It is building its own DataHub platform allowing developers to seamlessly deploy their applications over multiple Layer 1 and Layer 2 protocols.
On a concluding note. Figment writes: “We will continue building on this foundational technology by scaling our infrastructure horizontally and vertically across the PoS industry further supporting token holders and developers investing and building on Web 3”.