FinTech trust company Reserve Trust, which has a Federal Reserve master account, secured a $30.5m Series A investment in a round led by QED Investors.
FinTech Collective and Ardent Venture Partners also participated in the funding round, which included $17.9m in secondary shares. The money raised in this round will be used to help Reserve Trust add to its team and invest in technology that will streamline the payment process as well as deliver new services, APIs, and payment rails that support embedded and real-time payments for any fintech service or software platform globally.
The funding comes after Reserve Trust raised $5m in a seed round in October 2019.
Reserve Trust provides B2B payments services that financial institutions and FinTech’s have previously only been able to obtain from correspondent and sponsor banks. It works with businesses that aim to embed payments for both domestic and cross-border B2B transactions. Customers store their money in custody accounts that are backed by Reserve Trust’s Federal Reserve master account and transfer funds using automated clearing house (ACH), Fedwire, SWIFT and other payment systems.
The company also appointed Dave Wright as CEO, and Dave Cahill as the chief operating officer. Wright and Cahill last partnered on the executive team at cloud storage company SolidFire, which Wright sold to NetApp in 2016.
Commenting on the funding, Wright said, “While banks will always have an important role to play in B2B commerce, they have struggled to deliver the technology and services that businesses need to fully digitize domestic and international payments. Reserve Trust’s unique combination of a trust charter with a Federal Reserve master account allows us to create foundational payment and custody services delivered via APIs to enable innovation across the entire fintech ecosystem. The funding announced today, including leading investors across the fintech ecosystem, will go a long way to helping us continue to execute on this vision.”
Echoing a similar sentiment, QED Investors Partner Amias Gerety added, “Despite all the excitement around digital payments and infrastructure, there is still no fintech that can offer direct integration with the US payment system. With Reserve Trust, we are creating foundational infrastructure to hold and move payments globally and at scale. Dave Wright and the team bring a track record of immense value creation and a history of being at the forefront of infrastructure innovation that is essential to unlocking capabilities for innovators in B2B payments.”
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