Squads Labs Raises $5.7 Million in Funding for Solana-Based Multisig Protocol
Squads Labs, the developer of the Solana-based multisig protocol Squads, has successfully raised $5.7 million in a strategic funding round. Placeholder VC led the round, with participation from Multicoin Capital, Solana Ventures, Jump Crypto, and other investors. Notable angel investors, including Anatoly Yakovenko (co-founder of Solana Labs), Lucas Brude (CEO of Jito Labs), and Mert Mumtaz (CEO of Helius Labs), also backed the round.
This equity with token warrants round marks a significant milestone for Squads Labs. The company began raising funds in April 2022 and closed the round in July. In total, Squads Labs has raised $12.5 million to date, including a $5 million round last year and a $1.5 million round earlier this year.
Introducing Squads Protocol: A Secure On-Chain Solution
Squads is a multisig protocol designed to assist crypto firms in securing and managing their digital assets on-chain. While it competes with custody firms like Fireblocks and Copper, Squads’ unique selling point is its smart contract wallet system. Unlike other protocols that rely on multi-party computation, Squads operates fully on-chain, providing complete transparency and immutability.
Additionally, Squads offers a web app that includes two products: SquadsX and Squads Pro. The web app leverages the Squads protocol to help crypto firms manage their developer and treasury assets through multisig. Meanwhile, SquadsX serves as a browser extension wallet that complements the web app’s functionality. For advanced features, users can subscribe to Squads Pro for $399 per month.
Expanding Services and Launching iOS Product
Squads has already secured over $500 million in assets for more than 100 clients, including notable names like Helium, Jito, Pyth, and Tensor. With the new funding, Squads plans to enhance its offerings and introduce its retail-facing iOS product later this year.
Chris Burniske, a partner at Placeholder VC, emphasized the importance of decentralization in light of recent events, stating that Squads provides a decentralized alternative to centralized counterparty custody risk. Currently, Squads Labs has an 11-person team and intends to maintain a lean structure in the near future.
Hot Take: Embracing Decentralization with Squads Protocol
Squads Labs’ successful funding round demonstrates the growing demand for secure on-chain solutions in the crypto industry. By offering a transparent and immutable smart contract wallet system, Squads sets itself apart from traditional custody firms. With its sole focus on Solana and plans to launch an iOS product, Squads is poised to expand its reach and provide users with enhanced functionalities. As more teams embrace decentralization, protocols like Squads become essential tools for mitigating centralized counterparty custody risks. The future looks promising for Squads as it continues to innovate in the multisig space.
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