We’re thrilled to announce our partnership and investment in Cybrid; a Banking as a Service (BaaS) platform for financial institutions, neo banks, and alternative financial providers to offer Web3 applications to their client base in near record time. Employing Cybrid, financial institutions and neo-banks can offer their clients Web3 trading products, high yield savings options, and payment/remittance products through a set of APIs. We joined with Golden Venture Partners and Luge Capital in making this investment.
We have strong belief that Web3 applications will power the most important technological transformation of our time and likely exceed the extraordinary benefits of the Internet Revolution.
And yet, even with this promise, we have a very long way to go. Only 12% of Americans and about 4% of Canadians have ever interacted with a Web3 product. And while this market is growing at about 12% CAGR, regulatory and governance uncertainties cast a pallor over mainstream adoption.
Our central conviction is that Cybrid will play a critical role in accelerating the mainstream adoption of digital currencies and underlying Web3 applications by bringing the technology to where consumers already are like neo-banks, financial institutions, and even alternative financial platforms like loyalty programs.
For legacy financial institutions, moving into the Web3 space is critical, if not existential to their long-term survival. As a testament to this risk, even at this very nascent stage, over 80% of Millennial millionaires have Blockchain/Web3 investments; and all of them (yes, you read that right) are not using traditional financial institutions to purchase and/or trade in these assets.
For neo-banks and financial technology firms, the ability to quickly provide Web3 applications will be a significant differentiator in their go-to-market function as seen by the stratospheric growth of trading applications on Robin Hood and Public in the United States.
Cybrid’s team is uniquely qualified to tackle the immense challenges that exist in this space. Avinash Chidambaram, the company’s Co-Founder and CEO, was formerly the CPO at Thinking Capital and previously started Ario, a platform that was acquired by Purpose Financial in 2020. The Company’s CTO Brent Carrara was the Head of Security at Ario and spent close to a decade in enterprise security at CSIS.
While the mainstream adoption of Web3 applications may still be some ways off, our conviction is that Cybrid will play a significant role in accelerating this process and opening up new opportunities for everyone.