A Wallet-as-a-Service startup has raised €7 million in a seed funding round.
Tangany, based in Munich, enables clients including Tezos Foundation, Quirin Privatbank and Exporo to provide custody of digital assets for customers on the blockchain via its white-label technology.
Supporting the storage of assets such as Bitcoin, Ethereum, stablecoins, security tokens and NFTs in both hot and cold wallets, Tangany now has more than 25 customers reflecting more than €400m of digital assets under custody.
The round was led by Nauta Capital. Existing investor HTGF and new investor C3 VC Fund also participated.
“With this successful funding round we begin the next chapter of our development,” said Martin Kreitmair, CEO. “We were 4x oversubscribed which shows that Tangany is heading in the right direction. So far, Tangany has been growing through its own profitability.
“Our partnership with Nauta Capital, C3 VC Fund and our existing investors, will enable us to accelerate our growth by expanding our team whilst also retaining our exceptionally high standards of quality and reliability. We will continue to innovate, and we couldn’t be more excited for the future.”
The team is expected to grow to more than 50 employees by the end of 2022, starting with the key hiring of Heinrich Polke, its new COO. The funding will also enable Tangany to add new services to the existing core custody business such as staking and yield farming.
Tangany says its mission is to advance crypto adoption and enable organisations to expand their catalogue of financial products whilst making the transition for their customers as smooth as possible.
Markus Düttmann, principal at Nauta Capital, commented: “Although the crypto industry has received a lot of attention recently, it has yet to cross the chasm from early adopters to mass market.
“This is largely due to the underlying technical complexities which Tangany and other custodians will play an instrumental role in abstracting away, thereby providing access to the next wave of crypto users.
“We are particularly excited about Tangany’s embedded approach, which allows anyone to seamlessly integrate cryptocurrencies into their offering”.