US-based crypto wallet company Fordefi has secured USD 10 million in venture capital investment to expand its crypto wallet to retail-facing platforms. The fundraising was led by Electric Capital, with Paxos and Alchemy joining as new investors.

The investment followed a USD 18 million seed capital raise in November 2022 with Lightspeed Ventures, Pantera Capital, and Jump Crypto, among others. Crypto investors, including retail and institutional, suffered billions of dollars in losses over the past years in exploits on decentralised finance (DeFi) applications or losing access to their digital assets held on platforms that imploded such as FTX. Enhancing security with a multi-party computation wallet solution Fordefi aims to make crypto safer with its self-custodial wallet with multi-party computation (MPC) that divides a single private key among multiple parties, eliminating a single point of failure.

MPC wallets are harder to hack and make interaction with DeFi apps less risky. The company has already onboarded institutional investors such as Pantera Capital, DeFiance Capital, Keyrock, and Flare Network to its MPC wallet and secured over USD 3 billion in blockchain transaction volume. Now, Fordefi is extending a Wallet-as-a-Service product to retail-facing platforms such as exchanges, fintech platforms and Web3 businesses to offer user-owned (self-custodial) wallets directly within their applications.

More fundraises in the crypto space In June 2023, Nebeus, a Spain-based crypto startup, secured EUR 1.3 million in a Seedrs round toward its EUR 10 million Series A funding. The capital will enhance app services, acquire licenses, and expand the team, with plans to launch a DeFi wallet and a comprehensive brokerage service. In February 2023, Denmark's fintech Lunar raised EUR 35 million, led by existing investors like Tencent and Kinnevik, aiming to expand in the Nordic region and achieve profitability.

The funds will accelerate growth, focusing on improving crypto and payments offerings and considering potential acquisitions. In May 2022, US startup Tactic, specialising in cryptocurrency financial management, secured USD 2.6 million in seed funding co-led by Founders Fund and Ramp. With support from notable investors like Elad Gil and Dylan Field, Tactic plans to expand its product and team to address the challenges of managing businesses' cryptocurrency holdings.

.