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Hinkal is a zero-knowledge (ZK) protocol that enables institutional investors to conduct confidential on-chain transactions, and it has raised $1.4 million in a strategic financing round.
Hinkal announced on April 26th that SALT Fund, led by AJ Scaramucci, the son of Anthony Scaramucci, led this round of financing. Other investors include Draper Associates, SNZ Capital, and Peer VC. Nika Koreli, co-founder and CTO of Hinkal, told The Block that the company raised this round of strategic funding due to increased investor interest.
The structure of this financing round consists of a simple agreement for future equity (SAFE) and token subscription agreement, resulting in Hinkal's valuation reaching $70 million. Tal Cohen, CEO of Kraken US, has also joined Hinkal's advisory board.
Hinkal provides confidential on-chain transactions for institutional investors such as venture capital funds, hedge funds, and family offices. This is achieved through the ZK protocol, which allows users to participate in decentralized applications using self-hosted private wallet addresses.
In traditional finance, you can send/sell/exchange without anyone watching—Hinkal is bringing this to cryptocurrencies, attracting a new wave of institutional users who value this on-chain discretion.
Hinkal requires users to undergo Know Your Business (KYB) verification to prevent illegal use of the protocol. Hinkal has developed a proof layer that allows users to choose their verification method. Users can verify ownership of centralized trading accounts (such as Coinbase or Binance) or use decentralized identity (DID) providers such as Authento, ZkMe, and Galxe Passport.
Koreli acknowledges that while Hinkal's KYB verification process is similar to traditional finance, the difference lies in allowing users to activate reusable proofs. He states that compared to traditional finance, which requires users to undergo KYB checks each time they open an account, Hinkal allows for reusable proofs.
Koreli states that top venture capitalists, including some investors in Hinkal, are currently using the protocol, but he refuses to disclose their names.
Hinkal ensures that its users (including venture capital firms) settle acquired tokens only through the protocol. Koreli states, "The traditional ownership model typically restricts the transfer of unowned tokens, so they cannot be deposited into Hinkal, and there are some exceptions to the 'liquidity ownership' that users can trade—we allow these tokens to be deposited and settled."
AJ Scaramucci, founder and managing partner of SALT Fund, referred to Hinkal as a breakthrough protocol, stating that it addresses key pain points for institutional funds, founders, and venture capital firms by enabling private DeFi trading strategies and token settlement without disrupting the market.
Koreli states that Hinkal operates on seven blockchain networks, including Ethereum, Base, Arbitrum, Optimism, Avalanche, Polygon, and BNB Chain, and supports all major dapps.
Hinkal currently employs approximately 10 employees, and Koreli plans to maintain a lean team structure. |
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Post time 4-5-2024 08:22:44