Bitcoin Developer Platform Chain Snags Another $9.5 Million in Funding

By Aug 20, 2014 12:44 PM EDT

NEW YORK (InsideBitcoins) — Chain, the platform that enables developers to build bitcoin applications on the blockchain, has closed a $9.5 million round of funding led by Khosla Ventures. The investment was supported by RRE Ventures, Thrive Capital, SV Angel, ox Group, Kevin Ryan, Barry Silbert, Scott Banister, Homebrew, 500 Startups and Pantera Capital.

As a part of the transaction, Keith Rabois, a partner with Khosla and former COO of portable credit card processor Square, has joined Chain’s board. Rabois is also a boardmember for Stripe, the bitcoin payment processor, which recently launched cryptocurrency Stellar.

“This funding will allow us to invest heavily in building the world’s most reliable and robust bitcoin infrastructure for developers, enterprises, and financial institutions,” Adam Ludwin, Chain’s founder and a partner with RRE Ventures, wrote on the Chain blog.

“Our thesis is that we’re in an era where people are looking for services to simplify very technical infrastructure so that they can build on-demand services,” Ludwin told Fortune. “The blockchain is this mammoth network that is quite difficult to build on…. It’s like telecom or credit card processing or web hosting where certain people at the beginning tend to do it themselves but, over time, it matures and bigger companies start accessing it. So what you need is reliability and real service-level agreements. When a big bank wants to connect to the blockchain, they want an expert to help them. We want that to be us.”

Earlier this year Chain received seed capital of $4.2 million.