Digital Wallet Maker Dynamic Raises $7.5M from a16z
Data Dashboard Enables Devs to Improve Wallet Access
By: Samuel Haig •Byte
Developers are continuing to work on new infrastructure for the web3 ecosystem despite the bear market.
On June 28, Dynamic Labs, a team working to make digital asset wallets a single sign-on device (SSO) for use across the web, launched in closed beta.
The team also announced it had raised $7.5M in a closed round led by Andreessen Horowitz, the Silicon Valley venture capital firm. Leading web3 VCs Circle Ventures, Solana Ventures, and Chapter One also participated in the round.
Dynamic’s dashboard allows dApp devs to launch support for multiple wallets and chains with a single click instead of requiring them to create unique custom code for each chain and wallet. Its kits also allow developers to provide users with specific tokens access to exclusive features, and to block wallets flagged by blockchain intelligence firm, Chainalysis, or the U.S. Office of Foreign Assets Control.
The project also offers an account-management dashboard so developers can track connected wallets. Devs create processes for users to complete know-your-customer verification for compliance purposes.
Michael Blau of Andreessen Horowitz tweeted that Dynamic is working to make wallet management easier and simpler.
Dynamic will build on top of existing decentralized identity standards including Sign In With Ethereum and WalletConnect. Itai Turbahn, Dynamic’s co-founder and CEO, told The Defiant that the team are “big fans” of both solutions.
He said that while Sign In With Ethereum and WalletConnect “solve parts of the identity problem” Dynamic seeks to unify existing standards into a holistic identity solution.
“Once you implement Dynamic, you get Sign in with Ethereum and WalletConnect, but also get access controls, NFT-based gating, Chainalysis integration, Customer information collection etc,” said Turbahn.
The announcement was generally positively received on social media. Twitter user luca_tomescu commented that “wallet-based login is such an underrated part of web3.” Zomgmi chimed in with “such a valuable are to be working [on] in the space.”
Others were critical that the project does not appear to be prioritizing support for Bitcoin wallets. Lifetheuniverce took exemption to the ability for devs to restrict access to wallets flagged as risky. “We need fewer permissions and monitoring. I should be able to transact with anyone I want without 3rd party veto,” they said.