Smart account protocols are gaining traction as Web3 becomes more mainstream. Squads Labs, the firm behind various smart account solutions, revealed it has secured $10 million in its series A funding round. Led by Electric Capital and joined by investors like Rockawayx, Coinbase Ventures, L1D, Placeholder, and Mert Mumtaz, this funding will enable the company to further advance the development of smart account technology and products.

Squads Labs is known for creating the Squads protocol, which comprises several smart contracts aimed at streamlining account management and facilitating the creation of more user-friendly apps and wallets. Additionally, the company has developed the Squads app, which utilizes the Squads protocol to provide institutions with a platform for conducting their on-chain operations, complete with customizable security features such as treasury management.

According to a press release, over $10 billion in custody relies on these solutions, and the Squads app is actively utilized by 250 teams. Squads Labs emphasizes the importance of developing tools that are user-friendly for both enterprises and individuals to transact, manage, and own digital assets in light of the increasing adoption of Web3.

To further this goal, the company has introduced Fuse, its proprietary smart wallet, in Testflight test mode for iOS users. Fuse simplifies complexities like private keys and seed phrases, offering features like 2FA capabilities and wallet recovery options not typically available in other Solana-based wallets.

The emergence of smart wallets is becoming more prevalent, with Coinbase recently launching a similar wallet offering. Coinbase cited the need to streamline crypto onboarding as the driving force behind this launch, aiming to remove barriers for new users such as network fees and recovery phrases.