Baanx, a cryptocurrency payments specialist authorized by the U.K.’s Financial Conduct Authority (FCA), has raised $20 million in Series A funding round, the company said on Tuesday according to CoinDesk. The investment, which included Ledger, Tezos Foundation, Chiron and British Business Bank, brings the crypto payment enabler’s total funding to over $30 million.
The company, which offers a platform for businesses and consumers to access crypto-based financial services, plans to use the funds to expand its global reach and product offerings.
Baanx was founded in 2018 by Garth Howat, a serial entrepreneur with experience in fintech and e-commerce. The company’s vision is to democratize access to crypto payments and banking, by enabling anyone to create their own branded digital wallets, cards and accounts. Baanx also provides a range of crypto services, such as lending, borrowing, staking, swapping and earning interest.
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Baanx claims to have over 100 clients across 40 countries, including banks, fintechs, crypto exchanges and merchants. Some of its notable partners include Wirex, Change Invest, Bitex and Bitwala. The company says it has processed over $2 billion in transactions since its launch and has grown its revenue by 300% year-on-year.
Howat said in a statement: “We are thrilled to have the support of such prestigious investors, who share our vision of bringing crypto payments and banking to the masses. This funding round will enable us to scale our platform, grow our team and launch new products that will make crypto more accessible and useful for everyone.”
Woodford Capital Partners’ partner James Woodford said: “We are impressed by Baanx’s team, technology and traction. They have built a powerful platform that leverages blockchain and smart contracts to provide innovative and secure crypto payment solutions. We believe Baanx has the potential to become a leader in this fast-growing market, and we are excited to back them on their journey.”
London-based Baanx, which runs the Ledger card product, recently signed a three-year partnership with Mastercard for the U.K. and Europe. Large legacy payments companies such as Mastercard and Visa have been quietly exploring things like payments on Ethereum, stablecoins and the Web3 world of non-custodial wallets – areas where Baanx provides seamless connectivity.
One of the key features of Web3 is the use of non-custodial wallets, which are software applications that allow users to store and manage their own cryptocurrencies and tokens, without relying on intermediaries or third parties.
Non-custodial wallets offer users more security, privacy and autonomy, as they are the sole owners of their funds and can access them anytime, anywhere. Non-custodial wallets also enable users to interact with various decentralized applications (DApps) that run on Web3, such as decentralized exchanges, lending platforms, gaming platforms and more.
However, Web3 is not only appealing to individual users, but also to large legacy payments companies that have dominated the traditional financial system for decades. Companies such as Mastercard and Visa have been quietly exploring the potential of Web3 and how they can leverage it to enhance their existing services and offer new solutions to their customers.
For instance, both Mastercard and Visa have announced partnerships with various stablecoin issuers, such as Circle, Paxos and Gemini, to enable their customers to use fiat-backed digital currencies for payments and settlements.
Stablecoins are cryptocurrencies that are pegged to a stable asset, such as the US dollar or gold, and aim to provide stability and liquidity in the volatile crypto market.
Moreover, both Mastercard and Visa have expressed interest in supporting payments on Ethereum, the second largest blockchain network by market capitalization and the most popular platform for DApps.
Ethereum enables users to create and exchange various types of tokens, such as utility tokens, governance tokens and non-fungible tokens (NFTs), which are unique digital assets that represent anything from art to collectibles to sports memorabilia.
Mastercard and Visa have recognized the growing demand for NFTs and have announced initiatives to facilitate their creation and distribution.
For example, Mastercard has launched a platform called Create & Play, which allows artists and creators to design and sell their own NFTs using Mastercard’s payment rails. Visa has also acquired a CryptoPunk NFT, one of the earliest and most iconic NFT projects on Ethereum, as a way to demonstrate its support for the NFT community.