Kinto's Ambitious Vision: Pioneering Ethereum Layer-2 Network with $5M Funding

The Kinto network, a blockchain initiative focusing on Ethereum layer 2, has achieved a noteworthy milestone by securing $5 million in funding throughout the current year. This project is committed to crafting a layer-2 network that strictly adheres to anti-money laundering regulations, boasting built-in know-your-customer (KYC) checks and an investor accreditation mechanism. Its primary objective is to streamline the integration of regulated financial institutions into the realm of decentralized finance (DeFi), establishing connections with tangible real-world assets.

Leveraging the OP Stack, an ensemble of software tools developed by OP Labs, Kinto has meticulously shaped its project, drawing inspiration from Optimism, the second-largest layer-2 network operating on the Ethereum blockchain. Notably, the renowned U.S. cryptocurrency exchange, Coinbase, utilized the OP Stack to forge its own layer-2 blockchain named Base.

In the initial stages of fundraising this year, Kinto successfully secured $1.5 million in a pre-seed investment from Kyber Capital Crypto. Subsequently, the project experienced another surge of financial support, accumulating an additional $3.5 million in a recent funding round led by Kyber Capital Crypto, alongside contributions from Spartan Group and Parafi. Further backing came from SkyBridge Capital, Kraynos, Soft Holdings, Deep Ventures, Modular, Tane, and Robot Ventures.

What distinguishes the Kinto network is its seamless integration of native KYC checks and an investor accreditation mechanism, pivotal elements for onboarding regulated financial institutions. Alan Keegan, the co-founder of Kinto, emphasizes that this addresses a significant challenge faced by these institutions in their quest for access to blockchain-based protocols.

The project aspires to carve a niche as the "first KYC'd layer 2 (L2) blockchain capable of supporting both modern financial institutions and decentralized protocols," as outlined in the official press release. By restricting transactions on the network exclusively to KYC-verified entities, Kinto aims to eradicate the prevalence of anonymous exploits and scams commonly associated with DeFi platforms. Moreover, the network extends offerings such as insurance and developer incentives, funded through transaction fees, to foster the creation of applications.

Kinto litepaper (Kinto) 

Alex Klokus, co-founder and managing partner at Kyber Capital Crypto, expresses unwavering confidence in Kinto's vision. He underscores the inevitability of a fully KYC'd layer 2 on the Ethereum blockchain and affirms Kinto as the ideal team to bring this vision to fruition. Kinto has outlined plans to commence the onboarding and KYC process later in the current month.

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