The Block reported on Entropy’s announcement that the crypto asset startup had closed a $25 million seed round.
Andreessen Horowitz, a venture capital firm based on Wallet Street, led the seed round for the crypto asset custodian. Dragonfly Capital, Ethereal Ventures, Variant, Coinbase Ventures, Robot Ventures, Inflection, and the Komerabi Fund also participated in the round, according to a press statement.
The money will go toward developing the company’s leading embedded payment, card, loan, and crypto solutions. In addition, the fund would invest in people and communities, as well as continue to expand internationally and deepen important worldwide connections.
Entropy is developing a decentralized custody platform based on multiparty computation and encryption approaches.
Tux Pacific, a self-taught cryptographer, and trans activist is the firm’s leader, according to The Block.
The company’s main goal is to outperform the traditional business models of centralized crypto custodians like Fireblocks and Coinbase.
According to The Block, entropy users will eventually establish their own rules for interacting with funds, such as setting time-gated limits.
A16Z recently assisted CRB Group, Inc., the parent company of fintech business Cross River Bank, complete a $620 million investment with Eldridge.
A16Z raised $4.5 billion in January for a dual fund aimed at strategic investments in the cryptocurrency ecosystem. According to the Financial Times, the company plans to invest $3.5 billion in its new cryptocurrency business fund, with $1 billion set aside for strategic investments in crypto firms seeking seed finance.