The recent collapse of FTX, a major player in the crypto world, has sent shockwaves through the industry. Beyond the market downturn, it has shed light on the importance of self-custodial wallets and the risks of centralized platforms controlling your crypto assets. In response to this, Account Labs, a rising star in the crypto space, has just announced a significant funding round of $7.7 million. This investment is a testament to the growing demand for secure self-custodial wallet solutions in the crypto world.
About The Company – Account Labs
Account Labs, the brainchild of a merger between Keystone Account Labs, a hardware wallet provider with 40,000 users, and UniPass, an account abstraction wallet builder, is at the forefront of wallet consolidation. The company is on a mission to give users full control over their digital assets and provide a user-friendly experience. Their new self-custodial wallet, UniPass, aims to deliver on this promise and revolutionize the way we manage our crypto assets.
The Funding of $7.7 Million
Account Labs recently secured $7.7 million in Series Pre-A funding. The investment is led by prominent names in both the web3 and traditional internet tech sectors, including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. This funding will be used to launch UniPass, a self-custodial wallet designed for consumers, making it easier for individuals to manage their digital assets securely.
In the midst of regulatory actions against crypto giants like FTX and Coinbase, Account Labs is focusing on proving the real-world use case of blockchain technology in areas with untapped potential. UniPass, built on the Polygon blockchain network, has its sights set on enabling fast and cost-effective cross-border payments, starting with Filipino freelance workers.
Traditional remittance options in the Philippines are known for being slow, expensive, and burdened with red tape. UniPass offers a game-changing solution by allowing users to instantly transfer funds, especially stablecoins, to their wallets. To facilitate this, the company has partnered with a third-party vendor authorized by the Philippine government to convert crypto into fiat, which can then be deposited into the popular domestic e-wallet, GCash. This innovative approach significantly reduces transaction and forex fees to about 1%, compared to the 8-10% attached to platforms like PayPal.
While UniPass currently does not charge commissions on transactions, the focus is on user growth. In the future, they might explore monetization options like offering users the chance to watch ads in exchange for free transfers. The overarching goal is to challenge the dominance of traditional web2 payment platforms such as PayPal, Wise, and Stripe.
As the crypto market undergoes a transformation in the aftermath of FTX’s fall, the rise of self-custodial wallets like UniPass marks a turning point. Account Labs‘ recent funding and their vision for secure and user-friendly wallet solutions demonstrate the growing demand for control over digital assets in the crypto community. With innovative approaches to cross-border payments, they are poised to make a significant impact, particularly in underserved markets like the Philippines.
1. What is the significance of self-custodial wallets in the crypto industry?
Self-custodial wallets give users complete control over their digital assets, reducing the risks associated with centralized platforms. This newfound control is particularly important in the wake of FTX’s downfall, which exposed the potential dangers of entrusting your crypto assets to centralized exchanges.
2. Who are the major investors backing Account Labs in its latest funding round?
Account Labs’ recent $7.7 million funding round is led by investors from the web3 and traditional internet tech sectors, including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures.
3. How does UniPass plan to revolutionize cross-border payments for Filipino freelance workers?
UniPass, built on the Polygon blockchain network, enables instant and cost-effective cross-border payments for Filipino users, especially those who hold stablecoins. By partnering with a government-licensed third-party vendor, UniPass significantly reduces transaction and forex fees, making it a more attractive option than traditional remittance services like PayPal, with their high fees and cumbersome processes.