Amid growing interest in self-custody solutions, Bitcoin-centric startup Foundation Devices announced today that it has closed a $7 million seed funding round. The Boston-based company said that it will use the cash to continue developing its crypto “digital sovereignty” products, which include both hardware and software wallets.
Blockchain investment firm Polychain Capital led the round, with Greenfield Capital, Lightning Ventures, Unpopular Ventures, Warburg Serres, and Bolt also participating.
Foundation’s flagship product, Passport, is a Bitcoin hardware wallet that features “airgapped security” without external USB or wireless communications. Instead, it uses a camera and QR codes to communicate, and has a built-in color display. The firm also offers a mobile software wallet called Envoy. The company claims that it has sold "thousands" of the Passport wallets over the past 18 months.
“Preserving freedom and privacy is more important than ever amidst worldwide censorship, privacy violations, and reckless financial and monetary policies,” Foundation CEO Zach Herbert said in Monday’s announcement.
The funding comes as more and more companies in the space are developing hardware wallets and expanding their functionality and appeal. Hardware wallets are a physical storage solution for Bitcoin and other cryptocurrencies that allow users to detach their private keys from the internet for safekeeping.
They have risen in popularity this year thanks to the bear market and the collapse of several high-profile crypto companies—including digital asset exchange FTX, which took billions of dollars’ worth of customer crypto funds along with it.
Original Apple iPod designer and engineer Tony Fadell recently partnered with popular crypto wallet company Ledger to release a new wallet called Stax, which has an E Ink display and credit card-like footprint. Jack Dorsey’s Block (formerly Square) is also building a hardware wallet, alongside other Bitcoin-centric initiatives.
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