Xverse Secures Funding from Draper Associates to Expand Bitcoin Neobank Services

Xverse, a platform offering a wallet and web3 gateway for Bitcoin, has secured a strategic funding round led by Tim Draper's venture capital firm, Draper Associates. The round also included participation from Trust Machines and Draper Dragon, though the exact amount raised was not disclosed. Xverse, which launched in 2021 and has surpassed two million downloads, combines a self-custodial Bitcoin vault with features like Earn, Cash, and Borrow rails. The platform allows Bitcoin holders to maintain control of their assets while accessing yield opportunities and liquidity.

The new capital will be used to expand Xverse's Bitcoin financial services, including yield-earning options, spending capabilities, and borrowing against Bitcoin holdings. The company emphasizes keeping users in control of their private keys while providing financial functions typically associated with traditional banks. CEO Ken Liao stated that Bitcoin holders should not have to sacrifice self-custody to access financial services.

The funding comes amid growing demand for self-custody and onchain financial applications in the Bitcoin market. Xverse cited data showing that Bitcoin DeFi reached a new record in total value locked in 2025, while Bitcoin balances on centralized exchanges hit a record low in 2026. These trends indicate a shift toward financial infrastructure that allows users to utilize Bitcoin without relying on centralized platforms.

Draper Associates, founded in 1985, is a Silicon Valley-based early-stage VC firm with a focus on various industries, including crypto and blockchain. The firm has backed notable startups such as Tesla, Skype, Coinbase, and Robinhood. Draper expressed enthusiasm for Xverse, describing it as a Bitcoin money app that could serve as a banking alternative for regular users. He emphasized that everything in crypto converges to Bitcoin and that Xverse is building the infrastructure to replace traditional banks.