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Cloud tokenization supplier TokenEx right now introduced that it had raised $100 million in collection B funding to reinforce its answer to safe digital transactions.
TokenEx’s platform allows organizations to tokenize any structured information, to allow them to transmit and retailer information securely by exchanging tokens with out storing any information on on-site techniques, due to this fact defending it from menace actors if an information breach happens.
The supplier’s abstracted tokenization-driven strategy to information storage gives enterprise and resolution makers with an answer that protects delicate information in opposition to menace actors who’ve gained entry to inner techniques.
Utilizing tokens to battle the inevitable
As hackers develop ever extra subtle threats, breaches are a matter of when, not if. In some unspecified time in the future or one other, even probably the most ready group will fail to stop a breach.
Final yr alone there have been 1,862 data breaches in comparison with 1,108 in 2020, which highlights that organizations are discovering it increasingly more tough to stave off superior menace actors.
“It’s 2022 and cybercrime is at an all-time excessive. The rise in card-not-present transactions, which has been additional propelled by COVID-19, has created an pressing demand for safe digital funds. That’s the place TokenEx comes into the image,” mentioned Alex Pezold, founder and CEO of TokenEx.
TokenEx goals to supply a solution to inevitable cyberattacks by guaranteeing that information isn’t saved in an on-site location {that a} cybercriminal can determine and breach. It ensures that if an attacker breaks right into a system they’ll solely be capable to view tokens, that are ineffective.
“TokenEx collects information by way of API calls or managed file transfers earlier than it enters a company’s inner techniques after which exchanges that delicate information for nonsensitive information known as ‘tokens.’ These tokens will be despatched to any API endpoint, making a layer of abstraction that safeguards in opposition to cyberattacks, whereas additionally rising freedom, management, and interoperability for its prospects,” Pezold mentioned.
The conflict in opposition to cost suppliers
The group is a part of the global tokenization market, valued at $2.3 billion in 2021 and anticipated to achieve $5.6 billion by 2026, as extra firms, retailers and retailers look to insulate themselves in opposition to information breaches.
The supplier is competing in opposition to many different organizations together with cost orchestration platform Spreedly, a cost ecosystem the place customers can seize, retailer and tokenize funds, which most not too long ago secured $75 million in funding in 2019.
It’s additionally competing in opposition to safe cost suppliers like Very Good Security, an answer that collects and shops cost information that made $60 million in Series C funding in 2020.
Nevertheless, Pezold says it’s TokenEx’s tokenization flexibility that differentiates itself from these suppliers. “Whereas these firms sometimes specialise in both funds or privateness, TokenEx gives options for each with its skill to tokenize any structured information set.”
The collection B funding spherical for TokenEx was led by K1 Funding Administration.
