Turnkey, a New York-based startup specializing in crypto key management and wallet infrastructure, has raised US$30 million in a series B funding round.

The round was led by Bain Capital Crypto, with participation from Sequoia Capital, Lightspeed Faction, Galaxy Ventures, Wintermute Ventures, and Variant.

Founded in 2022 by former Coinbase employees, Turnkey has raised a total of over US$50 million.

The company provides tools for developers to create applications, including stablecoin platforms, DeFi terminals, and on chain AI agents.

The new funding will be allocated to expanding Turnkey’s team, enhancing its modular infrastructure, and supporting open-source initiatives.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Infrastructure investments signal crypto’s shift from speculation to utility

Turnkey’s $30 million Series B funding reflects a broader market evolution beyond cryptocurrency trading toward essential infrastructure development that enables mainstream applications.

This trend is particularly significant given that previous blockchain funding cycles were heavily weighted toward consumer applications, with early-stage investments (seed/angel and Series A) increasing from 80% in 2017 to 88% in 2019 1.

The participation of both crypto-native investors (Bain Capital Crypto) and traditional venture firms (Sequoia Capital) demonstrates how infrastructure plays are attracting diverse capital sources that see value beyond short-term market volatility.

This funding pattern parallels the internet’s development, where infrastructure investments (like AWS and cloud computing) eventually enabled mass consumer adoption by simplifying complex technology. Turnkey similarly aims to abstract away crypto complexity through its wallet infrastructure.

Notably, the company’s focus on embedded wallets addresses one of crypto’s persistent challenges: creating seamless user experiences that don’t require technical expertise, with infrastructure that can scale to millions of users across diverse applications.

2️⃣ Banking-crypto convergence accelerates despite persistent access challenges

Turnkey’s growth occurs as traditional finance companies increasingly integrate crypto capabilities—with Stripe supporting stablecoin payouts, Robinhood launching non-custodial wallets, and PayPal creating its own stablecoin—signaling a significant shift from past resistance.

Despite this convergence, crypto startups continue facing significant challenges accessing basic banking services, with many banks remaining hesitant due to regulatory uncertainties and compliance concerns 2.

This creates a paradox where major financial institutions are adopting blockchain technology while simultaneously maintaining barriers for crypto-focused companies seeking traditional banking relationships.

Successful crypto infrastructure companies like Turnkey are increasingly positioning themselves as bridges between these worlds, providing the technical foundation that allows traditional financial services to incorporate blockchain capabilities without rebuilding their entire stack.

3️⃣ Wallet infrastructure emerges as crypto’s strategic battleground

The competitive wallet infrastructure landscape—including Turnkey, Web3Auth (recently acquired by Consensys), and Privy—reflects a growing recognition that controlling the user access layer is crucial for mass crypto adoption.

Significant investments in this sector indicate that venture capital now views secure, scalable wallet infrastructure as essential for the next phase of crypto growth, moving beyond specialized applications to mainstream use cases 3.

The demand for enhanced security features is driving innovation, with solutions like Multi-Party Computation (MPC) technology eliminating single points of failure without requiring users to manage seed phrases 3.

This focus on improving user experience while maintaining security represents a significant maturation of the industry, as it addresses key barriers that have prevented broader adoption of cryptocurrency applications.

Turnkey’s claim to power over 50 million embedded wallets demonstrates the scale potential of infrastructure-focused approaches, suggesting that embedded wallet solutions could become the dominant model for mainstream crypto engagement rather than standalone applications.

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