Ramp raises EUR 1 mln to offer P2P fiat onramp

Ramp brands itself as more ‘decentralised’ due to its peer-to-peer trading structure that removes the need for a centralised custodial wallet, which exposes users to the risk of hacks. In Ramp’s trading model, a seller will first lock a certain amount of cryptos in a smart contract. Then, a buyer wire transfers fiat money to the seller’s bank account, which in turn triggers the smart contract to release the escrowed cryptocurrencies to the buyer.

As such, MakerDao, Seedcamp, Fabric Ventures, and Firstminute are pouring over a million dollars into a startup looking to rival centralised crypto exchanges with a model that shakes up the process of purchasing crypto with fiat currencies. For the moment, the company’s service is only offered in Europe where banks are required to disclose their APIs to licensed third-parties, which allows Ramp to verify the completion of wire transfer payments without forming partnerships with individual banks.