Orbs, an Israeli blockchain startup, said Thursday it has secured a seven-figure investment from Kakao Investment, the venture arm of South Korean internet giant Kakao. The capital will fund protocol
Orbs, an Israeli blockchain startup, said Thursday it has secured a seven-figure investment from Kakao Investment, the venture arm of South Korean internet giant Kakao. The capital will fund protocol development and expansion efforts.
Orbs developed a hybrid blockchain layer that sits above existing protocols like Ethereum to help them scale. Founded in 2017, the company's technology functions as middleware for large consumer-facing decentralized applications, or DApps. It enables interoperability across multiple base-layer blockchains. The platform enters production in early 2019, with Orbs working alongside partners on the launch.
Daniel Peled, Orbs' CEO and co-founder, said Kakao's backing signals confidence in DApps' potential in South Korea and demonstrates the platform's rapid growth across Asia. Kakao operates KakaoTalk, South Korea's dominant messaging app with 220 million registered users. Kakao's consumer applications serve more than 50 million active users worldwide.
"With Kakao's consumer applications counting more than 50 million active users worldwide, the investment in Orbs represents a significant endorsement of the long-term potential of our technology," Peled said. "Kakao Investment's relationship with Orbs reflects our regional strength and the potential we offer to make blockchain a powerful growth engine for its business units. Kakao was among the first major tech companies to recognize that blockchain is the future, and Orbs is excited to be a bigger part of that journey."
The investment coincides with a partnership announced in August between Orbs and Ground X, Kakao's blockchain subsidiary. The companies are collaborating to develop blockchain applications for Kakao's ecosystem and conduct joint research and development efforts.
Kris Park, Kakao Investment's executive director, said: "Kakao Investment is focused on identifying key trendsetters and innovators in the blockchain sector and Orbs is a great example. The company has developed an innovative business model and possesses unique technological capabilities, enabling us to support the company and maximize its potential."
Orbs is also working with Terra, a stablecoin project, on research and development initiatives. In June, the startup raised $118 million through an initial coin offering.
