Solvency-check startup for crypto firms raises $15.8 million

The Proven project raised $15.8 million in a seed round led by venture firm Framework Ventures. This is stated in the press release.

The startup is developing a technology based on zero-knowledge proofs, designed to help crypto firms demonstrate solvency without having to disclose confidential information.

Among other investors: Balaji Srinivasan, Roger Chen and Ada Yeo.

A Proven spokesperson said that “proof of solvency” enables firms to display assets and liabilities without publicly disclosing balances.

“The last few months have highlighted a problem that has long troubled financial companies and crypto firms: the lack of an effective and confidential way to bolster client trust,” said Richard Dewey, co-founder of Proven.

He added that the new development would enhance the credibility of crypto platforms among users and regulators, while protecting their personal information.

Among the startup’s clients are CoinList, Bitso, TrueUSD and M11 Credit.

The funds will be used to grow the team and develop the technology infrastructure.

Soon after the FTX collapse, many crypto projects began to provide proofs of solvency. The first in the industry to launch the Proof-of-Reserves launched by Binance.

In February, the largest crypto exchange integrated zk-SNARK into its reserve verification mechanism.