Account Labs Secures $7.7M During Crypto Wallet Boom

Following the collapse of the FTX empire, a surge in demand for self-custodial wallets has been observed, directly linked to the risks associated with crypto wallets controlled by centralized trading platforms. Self-custodial wallets, as suggested by the name, offer users complete control over their digital assets. Despite the crypto market’s downturn, wallet solutions continue to compete for users.

Account Labs, a key player in this field, announced a new $7.7 million Series Pre-A funding round. The investment comes primarily from web3 and established internet tech investors, including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures.

The Rise of Wallet Consolidation

The crypto wallet space is experiencing signs of consolidation as centralized exchanges and established wallet solutions strive to meet new user demands. This includes a blend of asset control and user-friendly interfaces, made possible by recent technical advancements in the blockchain community.

Account Labs emerged from this wallet consolidation trend. The funding round follows a merger between hardware wallet provider Keystone Account Labs, with a user base of approximately 40,000, and account abstraction wallet builder UniPass. The merger led to the creation of Account Labs. The additional funding will be used to launch a new self-custodial wallet for consumers, called UniPass.

Tapping into Cross-border Payments

As the U.S. government imposes actions on crypto giants like FTX, Coinbase, and Binance, blockchain startups endeavor to prove their real-world use case in other global regions. UniPass is set to target freelance workers in the Philippines, as part of its vision for Southeast Asia. UniPass operates on Polygon, a blockchain network recognized for speed and low fees.

UniPass aims to provide an efficient, cost-effective alternative to existing remittance options in the Philippines, which are often characterized by bureaucracy, slow speeds, and high fees. Filipino users holding stablecoins can instantly transfer funds to UniPass. Through a partnership with a licensed third-party vendor, crypto can be converted into fiat and deposited into the popular domestic e-wallet GCash. The total transaction and forex fees are approximately 1%, in stark contrast to the 8-10% typically associated with PayPal.

UniPass is currently not charging commissions from transactions, focusing instead on user growth. Future monetization strategies might include offering users the chance to watch ads in exchange for free transfers. Account Labs CEO Lixin Liu expressed the company’s ambition to challenge major payment platforms such as PayPal, Wise, and Stripe.