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BVNK grabs $40 million for its crypto banking services – TechCrunch

Launch of the cryptocurrency BVNK (pronounced “bee-vee-en-kay”) has closed a $40 million Series A funding round with a post-money rating of $340 million. Interestingly, Tiger Global is leading the pack despite being in the news for having experienced it a loss of $17 billion during this year’s tech stock sell-off.

Other investors in today’s funding round include The Raba Partnership, Avenir, Kingsway Capital, Nordstar, Concentric, Base Capital and various business angels. BVNK signed its term sheet last month.

BVNK provides banking services and payments for crypto-native businesses. Businesses using BVNK can accept payments in both fiat and cryptocurrencies, hold hundreds of different currencies and crypto assets, and send funds all over the world.

Before landing with this product offering, the BVNK team was working on a consumer platform. It was a more traditional crypto exchange with a focus on emerging markets and remittances.

“We originally started a retail business and now it’s a pure B2B business. We’ve spent the last year scouting the best talent in the crypto space. We now have 120 employees in the company,” Jesse Hemson-Struthers, co-founder and CEO of BVNK, told me.

While cryptocurrencies currently have a very bad weekmany companies have been looking for ways to support cryptocurrencies in one way or another. But it was a difficult process as many banks around the world just don’t want to work with cryptocurrencies at all.

“Financial services really aren’t made for crypto at all,” co-founder and chief product officer George Davis told me.

BVNK is targeting both crypto-native and crypto-interested businesses, such as “payment companies that are being pushed to accept crypto,” Davis said.

The main hook to get new customers is banking. You can use BVNK to replace some of your traditional bank accounts. From your BVNK account you can buy, sell, send and receive both fiat currencies like EUR, GBP and USD and cryptocurrencies like BTC, ETH and USDC.

In addition, BVNK has set up a payment service. It’s both a way to collect payments in crypto and a fiat-to-crypto ramp for people looking to buy crypto assets. Companies using BVNK can use this API with their own customers.

The Fiat ramp is particularly interesting as BVNK wants to compete directly with it MoonPay. If you’re not familiar with MoonPay, it’s a popular on-ramp API for other products. For example, many crypto wallets embed MoonPay in their apps to allow users to buy crypto assets with a debit card.

BVNK believes that it can create a cheap alternative thanks to Open Banking. Instead of relying on debit cards, BVNK asks people to log in with their bank account details and initiate an instant payment from there. In this way, BVNK saves on card processing fees.

So far, BVNK has won around 120 customers. “We’ve been profitable as a company,” Hemson-Struthers told me. The company says it currently processes over $2 billion in annual payment volume.

BVNK grabs $40 million for its crypto banking services – TechCrunch Source link BVNK grabs $40 million for its crypto banking services – TechCrunch

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