Hinkal, a zero-knowledge (ZK) protocol designed to enable institutional investors to trade privately on-chain, has successfully secured $1.4 million in a strategic funding round.
The investment was led by SALT Fund, spearheaded by AJ Scaramucci, the son of Anthony Scaramucci. Other notable investors included Draper Associates, SNZ Capital, and Peer VC, according to an announcement made by Hinkal on Friday.
Nika Koreli, the co-founder and CTO of Hinkal, expressed that the company attracted significant investor interest, prompting the completion of the funding round within a mere two weeks after garnering attention in March.
Structured as a simple agreement for future equity (SAFE) and token warrants, the funding has elevated Hinkal’s valuation to $70 million. Tal Cohen, CEO of Kraken U.S., has also joined Hinkal’s advisory board.
Hinkal’s primary function is to facilitate confidential on-chain trading for institutional players like venture capital funds, liquid funds, and family offices. Leveraging its ZK protocol, Hinkal empowers users to engage in decentralized applications with self-custodial private wallet addresses.
Koreli explained that Hinkal mandates a know-your-business (KYB) verification process to prevent illicit use of the protocol. Users have the option to validate their ownership either through centralized exchange accounts (e.g., Coinbase or Binance) or decentralized identity (DID) providers like Authento, ZkMe, and Galxe Passport.
While resembling traditional finance in its KYB verification process, Koreli emphasized that Hinkal distinguishes itself by allowing users to activate reusable attestations, contrasting with the standard practice in traditional finance, which necessitates KYB checks for each account opening.
Regarding Hinkal’s user base, Koreli disclosed that “top VCs,” including some of the platform’s investors, are currently utilizing the protocol, although specific names were not disclosed.
In terms of token management, Hinkal ensures that users, including VCs, only liquidate vested tokens through the protocol. Exceptions are made for “liquid vesting,” allowing users to deposit and liquidate tokens that have not yet fully vested.
AJ Scaramucci lauded Hinkal as a “groundbreaking protocol,” addressing critical pain points for institutional funds, founders, and VCs by enabling private DeFi trading strategies and token liquidation without disrupting the broader market.
Operational across seven blockchain networks, including Ethereum, Base, Arbitrum, Optimism, Avalanche, Polygon, and BNB Chain, Hinkal boasts compatibility with all major decentralized applications. Currently employing approximately ten individuals, Koreli intends to maintain a lean team structure moving forward.
