Prime Trust Raises $107 Million Series B Round To Expand Crypto Product Suite
Fintech and digital assets infrastructure provider Prime Trust has raised $107 million in Series B Funding.
FIS, one of the world’s largest payments processors, fintech-focused asset manager Fin Capital, Kraken Ventures and Prime Trust’s Series A lead investor, Mercato Partners, were among the leading investors in the round, the Las Vegas, Nevada-based firm announced today (Prime Trust declined to disclose valuation).
Despite the latest crypto crash, which saw the value of bitcoin and other digital assets plunge to their lowest level in 18 months, the round was oversubscribed, according to Prime Trust CEO Tom Pageler.
“This strategic investment will provide critical operational expertise to further scale Prime Trust into new offerings,” says Pageler, “including wealth products, as well as Web3 and DeFi products.”
Specifically, the company will focus on scaling its latest offering, Prime Trust Crypto IRA, which allows users to onboard, fund accounts and invest retirement funds in cryptocurrencies such as bitcoin, ether, USDC, USDT, litecoin and cardano. Announced in late March, the product is running in beta mode until its full launch, expected in the fall.
The funding should also help Prime Trust build expertise in tokenizing securities. “We’re actively working with some of our partners in the crowdfunding space to get this offering with them first before having it available for the larger consumers,” says Pageler. According to Prime Trust’s spokesperson, one of those early partners includes Atlanta, Georgia-based wealth management firm 1776 Wealth.
The company will also invest in enhancing its security and cloud infrastructure—a must considering that the firm claims to process hundreds of millions of API calls for nearly 700 fintech and digital asset clients. Prime Trust’s payments, custody, liquidity and settlement APIs serve some of crypto’s largest startups including Dapper Labs, FTX and Binance US.
In 2021, Prime Trust saw a 2,000% growth in user accounts while processing 300 million API calls and settling up to $3.5 billion per month. That is on top of doubling revenue for four years straight, according to the firm’s chief executive.
Though the new ‘crypto winter’ may last for a while, Pageler says Prime Trust “doesn’t plan on downsizing at this time.” The company’s financing round is the latest high-profile venture capital deal post bitcoin’s 30% plunge this month.
Yesterday, Solana-based NFT marketplace Magic Eden announced the close of its $130 million Series B round at a $1.6 billion valuation and earlier today digital asset prime brokerage FalconX said it had raised $150 million in a Series D financing round at a valuation of $8 billion.