Utila Secures $18 Million in Series A Funding

Utila, a digital asset operations platform, has raised $18 million in a Series A funding round to expand its multi-party computation (MPC) wallet solutions as institutional demand for managing digital assets soars, the company told CoinDesk.

Investment Details

Nyca Partners led the round, with participation from Wing VC, NFX, Haymaker Ventures, Gaingels, and Cerca Partners. This latest round brings the startup’s total venture capital funding to around $30 million, since emerging from stealth last year.

Rising Demand

Utila has witnessed a renewed demand for digital asset infrastructure. Payment providers, fintech firms, and neobanks are increasingly using digital assets, including stablecoins and tokenized assets in their operations. Co-founder and CEO Bentzi Rabi mentioned this trend in an interview.

Security Concerns

With ongoing security concerns highlighted by the recent $1.5 billion exploit of crypto exchange Bybit, Rabi explained that organizations currently have limited options: either outdated institutional wallets lacking key features or simple wallets that aren’t enterprise-ready.

Technology and Features

Utila’s platform utilizes multiparty computation (MPC) technology, which divides a private key across multiple parties, thereby minimizing the risk of a single point of failure. Key features include insurance coverage against security threats and asset losses, as well as a business continuity offering that mirrors existing services.

The platform has processed $8 billion in monthly digital asset transactions, up significantly from $3 billion seen in early 2024.

Future Aspirations

The funding will enable Utila to expand globally and enhance its product offerings, including advanced gas management, API integrations, and smart contract support.