FinTech infrastructure startup Merge has secured $9.5 million in seed funding to further develop its API-based banking and payments platform aimed at bridging the gap between fiat and crypto ecosystems.
The funding was led by Octopus Ventures with participation from Hashed, Coinbase Ventures, Alameda Research, and Ethereal Ventures, and angel investors including Aave Founder, Polygon Co-Founder, Ledger CEO, Former CEO of Barclays Consumer Banking and others.
“Merge’s vision is to build the infrastructure necessary to enable crypto businesses to operate without fear of being shut down by regulators or third-party risk teams,” Zihao Xu, an investor at Octopus Ventures, said in a statement. . Press release.
“As the crypto economy moves into the mainstream, it is increasingly clear that the current financial infrastructure is not suited to serve the rapid expansion of crypto-native businesses, and many providers are not are not specialized enough to assess the risks,” Xu said.
See also: PayPal Vets Launch $158M Fund to Advance FinTech
Merge addresses the myriad of issues that many crypto businesses face when it comes to accessing traditional financial services, such as high fees and substandard features. While the Web3 economy is estimated to be a $1 trillion market, crypto businesses are viewed as high risk by Tier 1 banks, according to the release.
Read more: Crypto Investor Framework Ventures Launches $400M Fund for Web3, DeFi
“The exponential growth of crypto startups has obviously led to a dramatic increase in CeFi and DeFi assets under management, which gives us strong confidence in Merge as an infrastructure provider for these institutions. Institutional players will naturally seek a reliable compliance infrastructure, and Merge is the only one-stop-shop solution that specifically meets their needs,” said Baek Kyoum Kim, Partner at Hashed.
Launched in 2020, Merge uses a single API to offer cryptocurrency and Web3 businesses a range of banking and payment solutions, including the ability to instantly create bank accounts, send payments and convert funds between fiat and crypto.
You can also take advantage of: Coinbase Pay debuts for businesses Web3, developers use