Reservoir, a leading token trading infrastructure provider, has raised $14 million in a Series A funding round led by Union Square Ventures.
The investment, led by Union Square Ventures, a technology-focused venture capital firm in New York, aims to expand Reservoir’s infrastructure and facilitate broader NFT trading capabilities across various networks.
The funding will also enable the development of new tools for indexing token images and data and improving interactions with decentralized exchanges and NFT marketplaces.
Despite a significant downturn in the NFT market, which saw a dramatic slump in trading volume and sales since 2020, Reservoir remains optimistic about the future of digital assets. According to Jason Maier, co-founder and COO of Reservoir, the recent decline is a correction following a speculative bubble. Maier emphasized the continued potential of NFTs to transform digital ownership, citing ongoing interest in areas such as collectibles, art, and real-world asset tokenization.
The funding round reflects a commitment to advancing NFT infrastructure and signals a positive outlook for the NFT sector, which has shown signs of revival. In December, NFT sales reportedly surged to $877 million, indicating a rebound in market activity.
Additionally, significant moves like Yuga Labs’ acquisition of Tokenproof suggest a growing interest in expanding the utility and adoption of NFTs across various applications.