Blockstream, a leader in blockchain and related technologies, today announced that it has raised $55 million in Series A funding to bring next generation blockchain innovation to the market using its sidechain technology, expand its operations globally, and support industry partners.
The round is led by Horizons Ventures, AXA Strategic Ventures and Digital Garage, with participation from existing investors including AME Cloud Ventures, Blockchain Capital, FuturePerfect Ventures, Khosla Ventures, Mosaic Ventures and Seven Seas Venture Partners. Horizons joined the Board of Directors as part of the round This builds on the $21 million seed round announced in 2014.
Blockchain technology is on the brink of computer science and is creating a new paradigm of programmable trust. Technology is rooted in decades of work on distributed systems, game theory and cryptography. It was founded by Austin Hill, Dr. Adam Back, leading Bitcoin engineers including Gregory Maxwell and Dr. Pieter Wuille, Blockstream provides companies with the most mature, well-tested and secure infrastructure in production-the Bitcoin protocol extended via interoperable side-chains-with one of the most experienced teams in the industry.
‘Blockchain technology is redefining what is possible within and beyond the fintech ecosystem,’ says Frances Kang, Horizons Ventures. ‘The transition to this new world, one that is decentralized, interoperable, secure and trustworthy, will be illuminating. We’re excited to be working with Blockstream to see their innovative sidechain technology reach its full potential. ”
Sidechains, a new blockchain protocol and platform, enable cross-chain functionality by extending Bitcoin to support both public and private blockchains. This approach leverages the most mature and well-tested technology, as well as nearly $1B invested in companies working with this code today, drastically reducing the cost of trust, improving security standards, and reducing network fragmentation.
‘We are convinced that blockchain technology is capable of transforming not only financial services but also other industries,’ said François Robinet, Managing Partner, AXA Strategic Ventures. ‘Blockstream has the best technical team in the industry and we strongly believe in their approach to developing the basic infrastructure for various blockchain applications. We value the open-source approach of Blockstream and its side-chain technology, which will allow interoperability between different chains and provide critical long-term success in this sector. We are also looking forward to partnering with Blockstream to drive the transformation of insurance and asset management companies. ”
‘We are excited to work with Blockstream to expand its business in Japan and other Asian countries in conjunction with Digital Garage’s strategic financial sector partners,’ said Kaoru Hayashi, Group CEO, Digital Garage. ‘We look forward to seeing how cryptofinance and blockchain technology are creating new contexts for a better society. ”
Blockstream’s platform is maintained under an open source license within the Elements Project. The company announced its first commercial sidechain offering last year, called Liquid, to provide an exchange settlement service for Bitcoin exchanges and brokerages. Blockstream has also recently announced a strategic partnership with PwC to bring these capabilities to established industry sectors and companies exploring new blockchain applications.
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