Fintech infrastructure startup Prime Trust raises $100M to add IRA and crypto staking

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The past few years have seen a massive proliferation of fintech services, during which fintech companies have competed to develop new products faster than their competitors. Currently, the race between fintech companies is much more about consolidation and which companies can create a cohesive “one-stop-shop” by bringing these different products together on the same platform.

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Cryptocurrency storage and launch of fintech infrastructure Prime Trust is positioning itself for just that, and the company has just raised more than $100 million in new funding to add new products to its existing suite, its CFO Rodrigo Vicuna told TechCrunch. The Las Vegas, Nevada-based company’s latest round is a Series B involving existing and new investors including FIS, Fin Capital, Mercato Partners, Kraken Ventures, Commerce Ventures, William Blair & Company, Decasonic, University Growth Fund, Gaingels, GateCap Ventures and Seven Peaks Ventures, the company said in a statement.

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Prime Trust previously raised $64 million from investors last summer, five years after it was founded. Since the last fundraiser, Prime Trust has expanded its team in many areas, including research and development, products and engineering, sales and compliance, bringing the total headcount to 400 people to date, Vicuna said.

The firm serves about 700 clients, including crypto exchanges, online platforms, wallet apps, ATS, RIAs, broker-dealers, and banks, Vicuna said. He added that Prime Trust plans to use the new funds to launch a cryptocurrency-focused IRA retirement account, as well as asset management and cryptocurrency products.

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Prime Trust’s current set of offerings can be divided into three main blocks, Vikuna explained: “onboarding,” which includes compliance and rails, “monetization,” which includes features such as trading and storage, and “liquidity,” which , he says, includes IRAs and trade-related products.

“Most people go to the prologue first because it’s necessary, right? You need to meet AML, KYC BSA requirements and you must be able to provide rails to enter and exit your platform. I would say it was the traditional spearhead for business and now a lot of people are saying hey cool this is table betting we need other things,” Rodrigo said.

He added that in addition to launching new products, the company also plans to expand support for tokenized products such as NFT, as well as invest in security and scalability improvements, including a new cloud architecture.

“Having support for this whole spectrum of non-interchangeability is a very important part of what we do as a primary backend provider for the common space and can support broader use cases. [of blockchain] beyond any one asset class,” Vikuna said.

the crypto infrastructure space is relatively busy, with startups of all stages such as Blockdaemon and Cryptio competing for a share. Vicuna says Prime Trust stands out because its product suite is “much broader,” which is an advantage for the company’s institutional clients, who can choose which aspects of the platform they want to use.

Even though fundraising conditions for crypto startups have been difficult in the last couple of months, Vikuna said the latest round of Prime Trust has oversubscribed. He said he sees investor interest as a reflection of the company’s status as a player offering the underlying technologies that many fintech and crypto companies rely on to grow.

“We had the advantage of both planning ahead and being in the right place at the right time,” Vikuna said.

“We are really betting on adoption. Taking a step back, I wonder if the macro market has affected the investment world? There is, yes. Was it difficult for us to grow? Not really… People were excited about the underlying server infrastructure of the market. They want to bet on adoption and believe that, despite the volatility, everything will turn out right.”

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