QuickNode, a platform for developing blockchains, has finished a $60 million fundraising round to attract more people to use and create Web3 applications as it seeks global adoption.
Per the company’s announcement, the valuation for QuickNode during this Series B funding was $800 million. VCs in this funding round include QED, Seven Six, Tiger Global, TenT Fund, and Tiger Global.
One company executive explained that the funding would help QuickNode expand internationally and accelerate the transition to “large-scale” Web3, including providing developers with the deployment capabilities needed to enroll more blockchain users.
Series B is the company’s most significant round of funding since raising $35 million as a seven-month-old startup in October 2021. QuickNode claims its user base has grown 400% since its first fundraising event.
Besides Ethereum, Matic, Optimism, Arbitrum, and Solana, eleven other blockchains are currently supported by the company’s infrastructure services. Although venture capital financing for blockchain technologies has recently decreased, Web3-focused companies continue to attract interest.
For instance, a Hong Kong investing company HashKey Capital recently completed a $500 million funding round to support its future Web3 endeavors.
QuickNode COO Jackie Kennedy commented about the state of venture capital. But, he said, “as the financial landscape evolves, funds are adjusting their investment criteria for who and what to invest.
Investors now value burn rates, breakeven points, and gross margins more than unlimited expansion.” According to on-chain data, Web3 projects will account for around 44% of blockchain investment transactions in Q3 2022.
The caveat is that there needs to be a consensus on what Web3 is today. For example, the term now describes a more user-centric, decentralized, and permissionless Internet.
Dima Shklovsky, co-CEO and co-founder of QuickNode, calls Web3 “the internet for today’s world.” Shklovsky said Web3 “uses blockchain technology to promote ownership, trust, governance, value sharing, and privacy.”
A SWIFT For Stablecoins And CBDCs
A Hong Kong-based blockchain company has developed a digital payments network to bridge the gap between stablecoins and central bank digital currencies (CBDC). Universal Digital Payments Network (UDPN), a blockchain infrastructure company also in charge of one of China’s blockchain endeavors, launched at the recent WEF 2023 conference in Davos, Switzerland.
The TOKO Digital Asset Generation Engine from tech companies GFT Technologies and DLA Piper enables the creation of UDPNs. According to its white paper, UDPN is a distributed ledger technology (DLT) platform, excluding stablecoins and CBDCs, which performs operations similar to the SWIFT network for banks.
UDPN “will serve the same purpose for next-generation CBDCs and stablecoins,” according to the announcement. Likewise, the SWIFT network created the first global standard for communication between financial institutions using different settlement processes.