Paxos raises US$300m for blockchain infrastructure platform
Labeling itself as the first platform of its kind, ’ vision is to create the foundation for a “new, open financial system” capable of operating faster, more efficiently, and with greater inclusivity on a global scale.
It is achieving this through a combination of turnkey APIs, regulated token asset exchanges, and blockchain-based settlements for institutions.
Officially launched in 2012, Paxos was the first to secure a New York State Department of Financial Services Trust Charter for Digital Assets, the first to launch a regulated stablecoin (PAX), the first to gain SEC permission to use blockchain in the settlement of stock trades, and many more industry records.
One of the world’s fastest-growing fintechs
The Series D round brings Paxos’ total capital raised to $500m and raises its value to $2.4bn, placing it among the fastest-growing fintechs in the world. The round was led by with participation from PayPal Ventures, Mithril Capital, WestCap, and others.
“Demand for our enterprise solutions has accelerated much faster than we could have anticipated,” Charles Cascarilla, CEO and Co-Founder. “It validates our approach to providing the most innovative and regulated enterprise solutions to replatform the financial system and create the digital economy of the future.”
To bear this out, Paxos achieved the following milestones in 2021 alone:
- Tokenised 100,000 oz of investment-grade gold with PAX Gold
- Grew stablecoin assets to almost $10bn
- Provided support for the launch of crypto transactions on Venmo in partnership with Paypal
Innovation by embracing regulation
Notably, Paxos has become successful by innovating close to regulatory lines, something not lost on Patricia Kemp, Co-Founder and Managing Partner at Oak HC/FT.
“Its solutions are designed to ensure trust with enterprise clients while enabling exciting new business opportunities.
“Few companies are approaching digital assets with such a clear vision as to how blockchain technology can revolutionise the transfer and creation of value. We’re excited to support Paxos at this pivotal time in the evolution of the global financial system,” she said.
As blockchain continues to be by the payments industry, whether in terms of optimisation or disruption, it seems clear that blockchain is poised to become the fundamental architecture of finance. Paxos, as a nexus for its development, may be able to realise its vision a lot sooner than previously imagined.
Image source: Paxos
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG