Fiat Republic, a company that is building a compliance-first, e-money regulated banking and payments API, has snared $3.5m from a seed funding round.
The round saw participation from Speedinvest, Seedcamp and Credo. Fiat Republic said it is looking to drastically reduce the time and cost of processing fiat currencies for crypto platforms both at the individual consumer and corporate treasury levels.
To address the issue of crypto platforms still struggling to access traditional transaction banking services, Fiat claims it is elevating the now established banking-as-a-service business model and incorporating fiat and crypto compliance at its core to provide crypto platforms with the much-needed access to mainstream and local payments networks in Europe and beyond.
The company is also developing a consortium of crypto platforms in order to get strong representation with regulators in order to lead standard-setting for the asset class and change its perception amongst traditional financial institutions.
According to Fiat, the money will be used to bolster its team and to accelerate acquiring regulated status in the UK and the EU.
Fiat Republic CEO Adam Bialy said, “The crypto industry as a whole is still in its infancy. We believe that by bringing crypto platforms into a single body under the Fiat Republic Consortium, we can increase our collective standing with regulators and enhance our leverage with big banks, who, until now, have dictated the terms of access to fiat based on harsh internal risk policies, often conceived mainly out of fear of the unknown.
“By creating an API that facilitates seamless data exchange between both traditional and crypto players, we believe we can foster transparency and better understanding between both sides, which in the future will benefit the whole.”
Fiat Republic CTO Martyna Lewinska added, “We are creating Fiat Republic to make it easier for crypto platforms to focus on building the future. Challenges in exchanging fiat currencies have always existed in crypto – we saw an opportunity to build a developer-first API capable of removing the need to batch files and undertake lengthy integrations with multiple banking partners.”
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