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Fiat Republic raises EUR 6.4 million in seed extension

Thursday 21 December 2023 15:04 CET | News

UK-based Banking-as-a-Service (BaaS) platform Fiat Republic has raised EUR 6.4 million in seed extension to bridge the gap between Web3 and traditional banks.

Through this extension, Fiat Republic aims to integrate the worlds of cryptocurrency and traditional banking by improving the accessibility of banking and payment services for cryptocurrency platforms.

This round of investment includes the participation of newcomers such as Kraken Ventures, Fabric Ventures, Arca, Inovo, and Pretiosum Ventures, alongside existing investors Speedinvest, Credo Ventures, and Seedcamp. The capital infusion will be utilised to drive sustained growth and expansion, along with a series of initiatives such as hiring strategic personnel, strengthening banking partnerships, and expanding into new territories.

Fiat Republic has raised EUR 6.4 million in seed extension to bridge the gap between Web3 and traditional banks.

 

Fiat Republic’s platform for cryptocurrency integration

According to the official press release, Fiat Republic provides a simplified solution for connecting crypto platforms with global and local bank transfer networks. Through a single API integration and compliance touchpoint, it offers a combination of traditional finance security and automated fiat payments using Embedded Banking. In addition to technical and compliance solutions, it intends to change the conversation between crypto platforms, traditional banks, and regulators. In addition, it aims to create an alliance of crypto platforms that will help transform the perception of cryptocurrencies in traditional financial circles by focusing on partnership, rather than conflict.

The company has also announced that it has been granted a full electronic money institution (EMI) licence by De Nederlandsche Bank (DNB), enabling it to provide regulated financial services across the European Economic Area. In addition to their established EMI licence in the UK where they have been operational for over a year, the Dutch licence enables the Fiat Republic platform to provide payment services and issue e-money to EEA crypto platforms via its purpose-built, developer-friendly API.

As per Fiat Republic's statement, the newly acquired Dutch EMI licence will help the company to operate across the entire European Union directly, providing e-money and payment services. Moreover, passporting from the jurisdiction of the Netherlands will boost its legitimacy in the traditional finance world, meeting compliance standards, security, and close collaboration with regulators. Thus, Fiat Republic stated that the Netherlands is ready for business ahead of the forthcoming MiCA regulation.

More about the gap between cryptocurrency and banking

Although cryptocurrency is currently experiencing a boom, it is still in its early stages and the industry faces challenges in accessing mainstream banking services. Big banks often reject crypto companies, as they do not understand them, and vice versa. The banking sector is not familiar with crypto and does not know how to adapt its processes to support crypto platforms confidently. As a result, banks miss out on opportunities to capture clean crypto fiat flows, and crypto platforms must pay high-risk premiums to their banking providers.

This is where Fiat Republic, a web3 enabler assisting crypto platforms comes into the picture. It is forming a group of cryptocurrency platforms to establish a strong presence with regulators, set standards for the asset class and alter its perception among traditional financial institutions.


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Keywords: cryptocurrency, BaaS, banking, payments , investment
Categories: DeFi & Crypto & Web3
Companies: Fiat Republic
Countries: United Kingdom
This article is part of category

DeFi & Crypto & Web3

Fiat Republic

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