Tim Draper’s VC firm backs Xverse in round to build Bitcoin neobank
The investment will support the development of the firm's self-custodial Bitcoin neobank that provides financial services while allowing users to retain control of their private keys.
Xverse, which provides a wallet and web3 gateway for the Bitcoin ecosystem, has raised a strategic funding round led by Tim Draper’s Draper Associates as the firm expands its push to build a self-custodial Bitcoin neobank.
The round was also joined by Trust Machines and Draper Dragon, Xverse said Monday without disclosing the amount.
Xverse, which launched in 2021 and has recorded more than two million downloads, combines a self-custodial Bitcoin vault with onchain Earn, Cash and Borrow rails. Through the platform, Bitcoin holders can keep their assets in self-custody while accessing yield opportunities and liquidity, Xverse stated.
The company said the new capital will be used to expand its Bitcoin financial rails, including services that allow users to earn yield, spend their holdings and borrow against Bitcoin.
The company’s model is based on keeping users in control of their keys while providing access to financial functions typically associated with banks. CEO Ken Liao said Bitcoin holders should not have to sacrifice self-custody to access financial services.
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The funding comes as the Bitcoin market shows signs of increasing demand for self-custody and onchain financial applications.
Xverse cited data showing that Bitcoin DeFi reached a new record in total value locked in 2025, while Bitcoin balances held on centralized exchanges fell to a record low in 2026. The company said these developments demonstrate a shift toward financial infrastructure that allows users to put Bitcoin to work without relying on centralized platforms.
Founded in 1985, Draper Associates is a Silicon Valley-based early-stage VC firm that invests in startups across industries and geographies, generally from pre-seed through Series A.
The firm’s focus includes AI, robotics and automation, crypto and blockchain, biotechnology and healthcare, along with aerospace, defense and other frontier technologies. Its reported early 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.