In a pivotal development for blockchain automation, Gelato, a decentralized network specializing in smart contract automation, has successfully raised $11 million in a Series A+ funding round led by Hack VC. This new injection of capital brings Gelato’s total funding to $23 million, with investments from Animoca Brands, IOSG Ventures, and Bloccelerate VC. The funds will be used to expand Gelato’s platform, enabling startups and enterprises to build and scale blockchain applications more efficiently, which could drive broader adoption of Web3 technology.
Kraken’s Ink Joins Gelato’s Expanding Customer Base
A highlight of Gelato’s recent funding announcement is the addition of Kraken’s Ink as a customer. Ink, Kraken’s highly anticipated layer-2 blockchain, is expected to launch in early 2025. Kraken, a renowned crypto exchange, aims to empower users through Ink by providing decentralized trading, borrowing, and lending services without the need for intermediaries. Gelato’s platform will facilitate Kraken’s move into decentralized finance (DeFi) by automating complex smart contracts and handling the technical intricacies of a scalable blockchain network.
Speaking with Cointelegraph, Gelato co-founder Hilmar Orth highlighted that Ink aligns with Gelato’s mission to work with Web3 leaders “poised to advance adoption past its current status quo.” He emphasized that Gelato prioritizes partnerships that can address Web3’s limitations by creating a more robust and accessible ecosystem.
Tackling Web3 Scalability Challenges
With the rapid rise in decentralized applications (DApps), scalability has emerged as a crucial issue for the Web3 ecosystem. High transaction fees and slow processing times, especially on networks like Ethereum, often hinder user experience. Orth pointed out that the notion of “all applications fitting on a single blockchain is outdated,” underscoring that a modular, multi-chain approach is critical for scaling Web3 effectively.
Gelato’s platform is geared toward solving these bottlenecks, providing automated solutions that streamline transactions and improve reliability. By offering a decentralized smart contract infrastructure, Gelato facilitates efficient blockchain interactions, reducing the need for manual interventions and mitigating risks like liquidity issues and transaction volatility in cryptocurrency trading.
A Second $11 Million Boost in October
The Series A+ funding follows Gelato’s $11 million Series A raise earlier in October, which saw contributions from prominent investors like Dragonfly Capital, ParaFi Capital, and Aave founder Stani Kulechov. These back-to-back investments reflect strong confidence in Gelato’s role as a leader in the blockchain automation sector.
The earlier funds were earmarked for onboarding more blockchain networks to Gelato’s ecosystem and expanding its team. Currently, Gelato operates a 15-member team that manages its Ethereum-based automation network, serving Web3 companies looking to automate smart contracts and optimize liquidity management.
The new funding will allow Gelato to enhance user experience for both Web2 and Web3 clients, catering to a diverse range of businesses looking to integrate blockchain applications into their operations. With support from industry giants like Kraken and investors across the crypto landscape, Gelato is well-positioned to lead in blockchain automation, bringing scalable solutions to a technology still in its early stages of adoption.
Also Read: Ethereum Foundation Moves $3M In ETH To Bitstamp – $124M In Holdings Under Scrutiny
By addressing core Web3 challenges and collaborating with companies like Kraken, Gelato is playing a central role in making blockchain technology more accessible and efficient for enterprises and users alike.
