Fiat Republic, a
London-based banking-as-a-service (BaaS) platform seeking to bridge the gap
between third-generation web (Web3) and traditional banks, is now an electronic
money institution (EMI) in the United Kingdom.
Fiat Republic said it
became an EMI through its acquisition of Paybase Limited, a payments
solution for platform businesses.
The acquisition, the
BaaS firm explained, enables it to provide payment services and issue
e-money to UK-based crypto platforms through its “purpose-built
developer-friendly application programming interface.”
“The acquisition of our
EMI license via Paybase Limited is a significant milestone for Fiat Republic,
and will allow us to engage in the provision of regulated financial services in
the UK to better service the needs of crypto platforms, whilst at the same [time] satisfying
the requirements of banks we partner with and those of the regulatory
community,” said Emily Harris, the Head of Compliance at Fiat Republic.
‘A Connective Tissue
Between Crypto and Banking’
Additionally, Fiat Republic disclosed that it has raised $2.5 million as part of an extension seed
round.
It noted that the
funding round was led by Credo Ventures, with participation from SoftBank
Investment Advisers’ Emerge Program, Connect Ventures and other strategic
crypto platform investors and angels.
Fiat Republic said the
fund will be used to expand its team and fund the acquisition of Paybase
Limited.
“The investment
demonstrates the participating investors’ continued commitment to web3
‘enabler’ infrastructure, and a long-term bullish sentiment towards the space,
despite the shorter-term pullbacks in crypto and wider global markets,” the
BaaS firm explained in a statement shared with Finance Magnates.
Adam Bialy, the CEO and
Co-Founder of Fiat Republic, noted that the investment is a strong validation
of the company’s vision to become “ the connective tissue between the worlds of
banking and crypto.”
Bialy added, “There is a
huge opportunity at the intersection of crypto and banking with more than
$1trillion in crypto-fiat volume traded annually, and we believe that through
our technology and systemic approach to compliance we are uniquely positioned
to unlock it for our partners.”
Fiat Republic further
disclosed that it has signed a strategic partnership with a leading US
bank.
It added that the
collaboration will enable both partners to “support their clients with USD
accounts, Automated Clearing…
