Peer-to-peer (P2P) bitcoin trading and lending platform Hodl Hodl has announced the successful closure of a Series B funding round from Kingsway Capital, Low Time Preference Fund, XBTO, and Samson Mow. The total proceeds of the round were not disclosed.
“The ability to anonymously transact on a peer-to-peer basis on Hodl Hodl’s non-custodial platform effectively removes borders, allowing individuals to establish financial contracts with someone else across the world in a programmable and verifiable manner, and importantly without re-hypothecation,” said Grant Gilliam, Managing Partner of Low Time Preference Funds, in an announcement shared with Bitcoin Magazine.
“This will greatly benefit those in oppressive and authoritative areas, and we are proud to support Hodl Hodl’s mission,” added Gilliam.
Hodl Hodl said it plans on strengthening its security, usability, and communication efforts with the proceeds of the round, after the recent challenges faced by the company.
In August, security issues in Hodl Hodl’s multisig escrow system led to forced liquidations of some contracts in its lending platform, Lend at Hodl Hodl. A lack of clear and encrypted communication by the firm spurred confusion among customers at the time.
“Though recently, we have met some bumps in the road, this is the point where we will get stronger, bring more resources to build high-quality products, and put maximum effort to improve the security, usability, and communication matters,” said Hodl Hodl CEO Max Kei.
All of Hodl Hodl’s investors will take an active part in the further project’s development, the company said. The P2P exchange is planning to form an advisory board with its investors and project supporters.
Blockstream CSO Samson Mow, who joined as a private investor, said the exchange’s team is “building the perfect platform to usher in a cypherpunk future where people can trade and lend without giving up their keys.”
Hodl Hodl’s non-custodial trading and lending models are also what spurred interest from XBTO, according to managing partner Greg Carson.
“We invested in Hodl Hodl because they are building interesting tools for Defi using the Bitcoin network along with world-class partners,” said Carson. “We have high expectations for this excellent entrepreneurial effort and hope to add value as an investor.”