TL;DR
- Australian firm CloudTech secured $14 million in a Series A funding round, with $11 million coming from crypto assets such as Bitcoin and USDT.
- The financing will enable the launch of a digital custody platform designed for institutions.
- This move highlights the growing acceptance of digital assets as a serious investment tool within the traditional financial sector.
Based in Melbourne and founded in 2021, CloudTech completed one of Australia’s largest crypto-denominated funding rounds to date. Of the $14 million raised, only $3 million was in cash, while the remaining $11 million was contributed in Bitcoin (BTC) and USDT, the stablecoin pegged to the US dollar. This distribution signals a clear shift toward decentralized investment models, even among institutional investors who increasingly recognize blockchain’s potential.
The funds will be used to launch “CloudTech Custody”, a crypto custody solution aimed at banks, wealth managers, and other financial players. Its goal is to provide robust infrastructure that merges blockchain efficiency with the security and transparency standards expected by traditional institutions. Additionally, it will facilitate smoother integration between legacy financial systems and digital asset-based services, fostering broader adoption.
Crypto Assets Drive Institutional Funding Growth
The participation of six investors — both individual and institutional — in this round demonstrates the increasing confidence in blockchain-based solutions. Choosing BTC and USDT as funding instruments highlights that these digital currencies are no longer seen solely as speculative assets but as legitimate vehicles supporting financial innovation.
Bitcoin currently trades above $109,000, with a market capitalization exceeding $2.1 trillion and a market dominance close to 63%, figures that reinforce its position as a cornerstone asset within the digital ecosystem. The inclusion of these assets in investment rounds marks not only a cultural but also an operational shift in the industry, pointing to a more mature and secure financial landscape.
Secure Infrastructure For A Decentralized Future
CloudTech’s new product will offer features like segregated wallets, end-to-end encryption, and transparent reporting. The company assures these capabilities will allow institutional clients to manage digital assets more securely and without the technical burdens associated with self-custody.
Beyond custody, CloudTech already operates “CobWeb Pay”, a platform bridging traditional payments with blockchain solutions. This expansion is part of its broader strategy to build a “crypto-native” financial ecosystem aligned with the global market’s evolution. They also plan to integrate automated compliance tools to attract more traditional players.
With this fundraising, CloudTech positions itself as a key player in the financial sector’s transition toward more open, secure, and decentralized models.
