Blockchain Startup Kinto Plans 'First KYC'd' Ethereum Layer-2 Network After Raising $5M

Ethereum-focused blockchain project Kinto announced that it has raised $5 million in fundraising rounds this year to develop a fully compliant layer 2 network with anti-money laundering laws, aiming to connect real-world financial institutions and assets connecting to decentralized finance (DeFi) rails.

The project was built using the OP Stack, a set of software tools created by developer OP Labs that companies can use to easily set up their own custom Layer-2 networks. The technology is derived from Optimism, the the second largest layer 2 network on top of Ethereum. Coinbase, the major US crypto exchange, relied on OP Stack to build its own layer 2 blockchain, Base.

According to a press release on Tuesday, Kinto secured $1.5 million in pre-seed investment from Kyber Capital Crypto earlier this year. It recently received another $3.5 million in a round led by Kyber Capital Crypto, Spartan Group and Parafi. SkyBridge Capital, Kraynos, Soft Holdings, Deep Ventures, Modular, Tane and Robot Ventures also participated in the round.

The Kinto network has native know-your-customer (KYC) controls – a kind of money laundering prevention – and an investor accreditation mechanism to help regulated financial institutions get on board – making it a big deal for them solved if they want to access blockchain-based protocols, Kinto co-founder Alan Keegan said in an interview with CoinDesk.

According to the press release, Kinto will be the “first KYC layer 2 (L2) blockchain that can support both modern financial institutions and decentralized protocols.”

Only KYC entities can transact on the network, so in this way Kinto can eliminate anonymous exploits and scams spreading on DeFi platforms, Keegan added. The network also offers incentives for insurance companies and developers to build applications based on transaction fees.

“We believe that a full KYC layer 2 on top of Ethereum is inevitable, and we strongly believe that Kinto is the right team to execute on this vision,” said Alex Klokus, co-founder and managing partner at Kyber Capital Crypto. , said a statement.

Kinto plans to open the onboarding and KYC process later this month.

Ethereum-focused blockchain project Kinto announced that it has raised $5 million in fundraising rounds this year to develop a fully compliant layer 2 network with anti-money laundering laws, aiming to connect real-world financial institutions and assets connecting to decentralized finance (DeFi) rails.

The project was built using the OP Stack, a set of software tools created by developer OP Labs that companies can use to easily set up their own custom Layer-2 networks. The technology is derived from Optimism, the the second largest layer 2 network on top of Ethereum. Coinbase, the major US crypto exchange, relied on OP Stack to build its own layer 2 blockchain, Base.

According to a press release on Tuesday, Kinto secured $1.5 million in pre-seed investment from Kyber Capital Crypto earlier this year. It recently received another $3.5 million in a round led by Kyber Capital Crypto, Spartan Group and Parafi. SkyBridge Capital, Kraynos, Soft Holdings, Deep Ventures, Modular, Tane and Robot Ventures also participated in the round.

The Kinto network has native know-your-customer (KYC) controls – a kind of money laundering prevention – and an investor accreditation mechanism to help regulated financial institutions get on board – making it a big deal for them solved if they want to access blockchain-based protocols, Kinto co-founder Alan Keegan said in an interview with CoinDesk.

According to the press release, Kinto will be the “first KYC layer 2 (L2) blockchain that can support both modern financial institutions and decentralized protocols.”

Only KYC entities can transact on the network, so in this way Kinto can eliminate anonymous exploits and scams spreading on DeFi platforms, Keegan added. The network also offers incentives for insurance companies and developers to build applications based on transaction fees.

“We believe that a full KYC layer 2 on top of Ethereum is inevitable, and we strongly believe that Kinto is the right team to execute on this vision,” said Alex Klokus, co-founder and managing partner at Kyber Capital Crypto. , said a statement.

Kinto plans to open the onboarding and KYC process later this month.