Draper Associates leads Xverse round to build self-custodial Bitcoin neobank
In brief
- Draper Associates led a strategic round in Bitcoin wallet Xverse, the company said Monday.
- Trust Machines and Draper Dragon also joined; Xverse didn't disclose the amount.
- Xverse says the money will expand its Earn, Cash and Borrow rails for Bitcoin holders.
- Users keep their private keys while getting bank-style financial services, the company says.
What Xverse says it's building
Xverse launched in 2021 and says it has recorded more than two million downloads. The company describes the product as a self-custodial Bitcoin vault paired with onchain Earn, Cash and Borrow rails (the pieces of a bank, minus the bank holding your keys).
According to Xverse, Bitcoin holders on the platform keep their assets in self-custody while accessing yield opportunities and liquidity. The company said the new money will expand those Bitcoin financial rails, including services for earning yield, spending holdings and borrowing against BTC.
It's a model built around one idea.
Users keep control of their keys, and they still get access to financial functions typically associated with banks. CEO Ken Liao said Bitcoin holders shouldn't have to give up self-custody to access financial services.
Why Xverse says the timing works
Xverse cited data showing Bitcoin DeFi hit a record total value locked in 2025, and that Bitcoin balances on centralized exchanges fell to a record low in 2026. Those are the company's figures, and LeoDex News hasn't independently verified them. Xverse said the trends show a shift toward financial infrastructure that lets users put Bitcoin to work without relying on centralized platforms.
That's the company's read on the market, offered alongside a fundraising announcement.
Who's writing the check
Draper Associates is a Silicon Valley venture firm founded in 1985 that generally invests from pre-seed through Series A. Its focus spans AI, robotics and automation, crypto and blockchain, biotechnology and healthcare, aerospace and defense, along with other frontier technologies. The firm's reported past investments include Tesla, Skype, Baidu, SpaceX, Twitch, Coinbase, Robinhood, Hotmail, Cruise and Carta.
Draper said Xverse is building a Bitcoin financial application that could serve as a banking alternative for regular users. Neither Xverse nor its backers put a number on the round, and there's no disclosed valuation.
Frequently asked questions
What is Xverse's self-custodial Bitcoin neobank?
Xverse describes it as a self-custodial Bitcoin vault combined with onchain Earn, Cash and Borrow rails. According to the company, users keep control of their private keys while accessing financial services typically associated with banks, such as earning yield, spending and borrowing against Bitcoin.
How much did Xverse raise from Draper Associates?
Xverse didn't disclose the amount. The company said Draper Associates led the strategic round, with Trust Machines and Draper Dragon also taking part. No valuation was disclosed.
