Draper Associates Backs Xverse in Bitcoin Neobank Push
Tim Draper's venture capital firm, Draper Associates, has invested in Xverse, a self-custodial Bitcoin wallet that now calls itself a Bitcoin neobank. The goal is to expand Xverse's onchain financial services.
Xverse started life as a wallet, running on iOS, Android, and as a Chrome extension. It serves nearly 2 million users. The company behind it is Secret Key Labs, based in Hong Kong, and is led by CEO Ken Liao.
The neobank label comes from the features layered on top of the wallet. There are three main pillars: yield, borrowing, and payments. Users can earn onchain returns through staking protocols such as Stacks, and they can take out stablecoins like USDC using their Bitcoin as collateral.
Draper Associates has advocated for Bitcoin since 2011 and has invested in Coinbase in the past. It's estimated that Xverse's total funding is between $9 million and $12 million as of mid-2026. The firm added Xverse to its portfolio by July 2026.