Fiat Republic, a startup aiming to support cryptoassets’ transition to a mainstream payment type, has raised £5.5m in a seed extension round.
Founded in 2021, Fiat Republic is a banking as service platform that provides crypto platforms with banking and payments APIs.
Fiat’s platform means crypto companies can embed and automate fiat flows to their end users and their internal treasury team.
The London-based startup is keen to bring together crypto platforms and traditional financial institutions through its tech and by encouraging communication between them.
CryptoUK’s, the trade body for British crypto firms, director of operations earlier this year told UKTN that banks were unfairly unwilling to engage with crypto platforms.
Fiat Republic recently secured an EMI licence in the Netherlands, giving it the ability to provide e-money services across the European Union.
“Passporting from the reputable and credible jurisdiction of the Netherlands not only boosts our legitimacy in the traditional finance world, but also highlights our commitment to high compliance standards, security, and close collaboration with regulators,” said CEO and co-founder Adam Bialy.
“This move, to me, also signals that the Netherlands is open for business ahead of the upcoming MiCA regulation.”
The round featured participation from Kraken Ventures, Seedcamp, Inovo.vc, Pretiosum Ventures, Credo Ventures, Fabric Ventures and Arca.
“Arca is enthusiastic to back Fiat Republic on its mission to bridge the gap between traditional banking and the rapidly growing financial needs of web3 projects,” said Arca’s Michal Benedykcinski.
“Our investment in Fiat Republic represents a deep belief in making compliant industry standards for individual transactions easy to follow by all market participants, whether you are a crypto platform, bank, or regulator.”
Fabric Ventures general partner Anil Hansjee said Fiat Republic’s “innovative and regulation-first approach in bridging the worlds of traditional banking and web3 is not only timely but crucial for the evolution of financial services.”