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Onramp has secured $12.5 million in a Series A financing round, spearheaded by Early Riders, assigning the bitcoin financial services company a valuation of $135 million as it aims to expand a custody framework built to satisfy institutional requirements.
The Austin-based firm informed Bitcoin Magazine that it currently manages over $1 billion in assets under custody, having experienced no security breaches since its inception in 2023. The newly acquired funding will fuel the growth of Onramp Finance, its recently unveiled platform that integrates bitcoin custody, brokerage, and cash management solutions, while also enabling new collaborations with banks, registered investment advisors, and fintech enterprises.
Central to this strategy is Onramp’s Multi-Institution Custody (MIC) model. This approach decentralizes crucial control mechanisms across several regulated custodians, rather than depending on a single entity or placing the full burden on clients. The system, developed in conjunction with partners such as BitGo, Coincover, and Tetra Trust, facilitates shared control structures that can extend across different legal jurisdictions.
This innovative method addresses a persistent challenge in digital asset custody. Investors have historically faced a dilemma: choosing between centralized platforms with inherent counterparty risks and self-custody solutions that demand significant technical proficiency and operational oversight. Onramp presents MIC as a balanced alternative, eliminating single points of failure while ensuring asset verifiability on the blockchain.
Early indicators of institutional acceptance are emerging. The UK pension fund Cartwright has appointed Onramp as the custodian for its bitcoin holdings, and the Bitcoin Policy Institute has advocated for multi-party custody frameworks for potential state-level bitcoin reserves.
A comprehensive bitcoin financial suite through Onramp
According to Chief Executive Michael Tanguma, the company’s ambition is to construct a complete financial ecosystem centered around bitcoin, encompassing services like lending, retirement accounts, and treasury management tools. The firm debuted Onramp Finance in April, providing brokerage services nationwide, interest-bearing cash accounts, a payment card, bitcoin IRAs, and access to gold, all within a unified interface.
Liam Nelson, a partner at Early Riders, stated that the firm invested in Onramp to promote MIC as an industry benchmark. He believes that the design of custody solutions will dictate the next stage of bitcoin’s widespread adoption.
The company intends to allocate the new funding towards both product advancement and market outreach. On the technical front, Onramp will continue enhancing its platform and preparing its custody infrastructure for licensing to other regulated custodians. Commercially, it will intensify sales initiatives and develop white-label solutions for financial institutions seeking to incorporate bitcoin services.
Onramp has also welcomed former Blackstone partner David Thayer as a strategic advisor, bringing valuable expertise in infrastructure investment as the company pursues deeper integration with traditional financial markets.
The underlying assumption is that as bitcoin becomes more prevalent in diverse investment portfolios, custody will emerge as a paramount consideration. Onramp is positioning its technological architecture as a foundational element for this transition, aiming to extend its model to institutions desiring exposure without incurring concentrated risks.
Based on materials from : bitcoinmagazine.com