Draper Associates Leads Investment in Bitcoin Wallet Xverse

Draper Associates, the venture capital firm founded by Tim Draper, has led a strategic funding round in Xverse, a self-custodial Bitcoin wallet. The round also included participation from Trust Machines and Draper Dragon, though the terms of the investment were not disclosed.

Xverse aims to integrate lending and yield products into its wallet without requiring users to surrender custody of their coins. This approach aligns with the emerging concept of Bitcoin DeFi, which seeks to provide decentralized financial services while maintaining user control over their assets.

The company claims its app has been downloaded over two million times since its launch in 2021. Xverse combines a Bitcoin vault with features like on-chain Earn, Cash, and Borrow rails, allowing users to earn yield and borrow while retaining their private keys. Headquartered in Hong Kong, Xverse did not reveal the amount raised, its valuation, or the individual contributions of each investor.

Ken Liao, Founder and CEO of Xverse, emphasized the company's mission to provide a financial account where users can hold, earn, borrow, and spend Bitcoin without relinquishing control. 'Bitcoin holders shouldn't have to choose between keeping their keys and putting their Bitcoin to work,' Liao stated.

Tim Draper, Founding Partner of Draper Associates, expressed strong support for Xverse's vision. He noted that his firm has backed notable companies like Tesla, SpaceX, Coinbase, and Robinhood. Draper believes Xverse is building the Bitcoin money app that could replace traditional banking for regular people.