Reservoir secures $14M to enhance NFT trading infrastructure

Reservoir, a provider of NFT infrastructure for platforms like Coinbase and MetaMask, has secured $14 million in Series A funding.

The funding round was led by Union Square Ventures (USV), with participation from Variant, Archetype, and Square Peg Capital.

The funds will be used to expand Reservoir’s infrastructure, enabling broader integration of NFT trading across multiple networks.

The company's infrastructure provides tools for indexing token images and data and interacting with decentralised exchanges and NFT markets.

Reservoir aims to facilitate seamless token trading across different blockchain networks.

The company's products include Relay, Reservoir Swap, and Reservoir NFT, which support bridging, token swaps, and DEX/NFT marketplace functionalities across various EVM-compatible chains, as well as Bitcoin (CRYPTO:BTC), Solana (CRYPTO:SOL), and Tron (CRYPTO:TRX).

Jason Maier, co-founder and COO of Reservoir, explained that while blockchains enable digital ownership, the tools needed to trade tokens on chains "don't come out of the box on blockchains."

"Creating a unified market for NFTs (and tokens at large) requires robust token indexing, aggregating token liquidity across marketplaces and interfacing with decentralised exchanges," he added.

Despite a significant downturn in the NFT market since its peak in 2021, Reservoir's funding suggests that investors still see long-term potential in NFTs.

Maier believes that NFTs can revolutionise digital ownership and that compelling use cases continue to emerge, including collectibles, art, and real-world assets.

While NFT activity is down 76% from its peak in 2022, there have been some signs of revival, with NFT sales reaching $877 million in December.