Onramp has successfully raised $12.5 million in a Series A funding round led by Early Riders, elevating the valuation of the bitcoin financial services firm to $135 million. The company, based in Austin, is focused on scaling a custody model that adheres to institutional standards.
In conversation with Bitcoin Magazine, Onramp disclosed that it currently oversees more than $1 billion in assets and has maintained a pristine record of zero security incidents since its establishment in 2023. The recently acquired capital will be instrumental in expanding Onramp Finance, a platform that integrates bitcoin custody, brokerage, and cash management, while also facilitating new partnerships with banks, registered investment advisors, and fintech firms.
At the heart of Onramp’s strategy is its Multi-Institution Custody (MIC) model. This innovative approach distributes key control across various regulated custodians, avoiding reliance on a single entity and alleviating the burden of full responsibility from clients. Collaborating with partners like BitGo, Coincover, and Tetra Trust, Onramp’s system allows for shared control structures capable of spanning multiple jurisdictions.
This model addresses a significant issue in digital asset custody: investors have typically been forced to choose between centralized platforms that come with counterparty risks and self-custody setups that demand technical know-how and diligent operational oversight. Onramp’s MIC framework presents a balanced solution that eliminates single points of failure while ensuring assets remain verifiable on-chain.
The traction within institutional markets has started to emerge. For instance, the UK pension fund Cartwright has appointed Onramp as the custodian for its bitcoin allocation. Additionally, the Bitcoin Policy Institute has advocated for multi-party custody frameworks for potential state-level bitcoin reserves.
Michael Tanguma, Onramp’s CEO, articulated the firm’s vision of constructing a comprehensive financial stack around bitcoin. This includes plans to offer services like lending, retirement accounts, and treasury management tools. Following its launch of Onramp Finance in April, the firm now provides brokerage services across all 50 states, alongside cash accounts with rewards, a payments card, bitcoin IRAs, and access to gold, all within a single interface.
Liam Nelson, a partner at Early Riders, emphasized that the firm’s investment in Onramp aims to establish MIC as a new industry standard, asserting that the design of custody frameworks will significantly influence the future phase of bitcoin adoption.
Onramp has outlined plans to allocate the new funding towards both product development and distribution. On the engineering front, the company will enhance its platform and work towards licensing its custody infrastructure to other regulated custodians. Meanwhile, efforts will also be directed towards expanding sales and developing white-label options for financial institutions interested in integrating bitcoin services smoothly.
Additionally, Onramp has appointed David Thayer, a former partner at Blackstone, as a strategic advisor. His expertise in infrastructure investing will be valuable as Onramp strives for deeper engagement with traditional finance. This strategic move underscores the firm’s belief that as bitcoin becomes a more prevalent part of investment portfolios, concerns surrounding custody will gain prominence. Onramp’s architecture is being positioned as a foundational element to facilitate that transition, particularly for institutions seeking exposure to bitcoin without exposing themselves to concentrated risks.
