Coinflow Raises $2.2 Million to Build Financial Blockchain Tech
Instant settlement payment provider Coinflow Labs has raised $2.25 million in seed funding.
The company said this funding round, announced Tuesday (May 28), will help it bolster its payments infrastructure solution, which is designed to reduce the time it takes for merchants to receive payments.
“Typically, merchants who accept cards experience multiple business days of delay before settlement, causing strain on their business,” Coinflow said in a news release. “Coinflow offers the ability for merchants to receive their money instantly. Coinflow provides a comprehensive payment stack that includes chargeback-free payment acceptance with instant settlement in stablecoins.”
In addition, the company offers an instant fund disbursement product, which lets businesses instantly pay out funds from stablecoins to their users’ bank accounts via real-time payment rails such as Visa Direct, RTP® Network through The Clearing House and instant SEPA.
“Amid unprecedented market volatility and uncertainty across the entire global financial system, there exists a unique opportunity to bring efficiency, security and trust to payments systems, especially within the evolving web3 space,” said Daniel Lev, the company’s co-founder and CEO.
“We developed Coinflow to bridge the gap between traditional finance and blockchain technology, bringing together the best parts of both to create a value-added service for merchants enabling instant settlement,” Lev added.
Writing about the growing use of stablecoins last month, PYMNTS noted that this digital currency can help businesses “access instant settlement and liquidity without relying on intermediary banks or payment processors,” which “can optimize cash flow management and reduce reliance on traditional banking infrastructure.”
And because every transaction conducted using stablecoins is recorded on the blockchain, providing an irrefutable audit, CFOs and treasurers can enjoy enhanced compliance, reduced fraud and streamlined auditing.
As noted here in February, advocates of blockchain’s underlying technical capabilities are eager to sever the technology from its associations with cryptocurrency.
“That’s in part why, with the digital economy continuing to grow, the adoption of stablecoins in mainstream payments appears to be growing with it,” PYMNTS wrote, using the example of Stripe’s recent announcement that it plans to start supporting global stablecoin payments as soon as this summer.
This spring has also seen PayPal and cross-border money transfer service Xoom team up to let users make international transactions using PayPal’s USD stablecoin, launched last year.
Also in April, blockchain and cryptocurrency company Ripple divulged its own plans to introduce a dollar-pegged stablecoin backed 100% by U.S. dollar deposits, short-term U.S. government treasuries, and other cash equivalents.
The post Coinflow Raises $2.2 Million to Build Financial Blockchain Tech appeared first on PYMNTS.com.