Token, a San Francisco and London-based open banking platform, raised $16.5m in funding from outstanding tech funds together with Opera Tech Ventures, the enterprise arm of BNP Paribas, Octopus Ventures, and EQT Ventures, in accordance with an announcement Tuesday.
This strategic spherical of funding comes on the heels of the corporate’s partnership with Mastercard. Token is working to develop a connectivity layer for the legacy funds processor’s open banking hub “that can assist third events set up and preserve communication with banks for knowledge and/or cost,” stated Token consultant Erin Lovett. The partnership represents “the primary motion in open banking by a big infrastructure supplier.”
Combining open APIs, cryptographic safety features, and programmable cash to develop new banking purposes, the corporate stated it assists banks combination consumer account data from a number of exterior sources, provoke bank-direct funds, and cut back the price of cost acceptance.
An API additionally offers compliance with PSD2 obligations, a regulatory directive within the EU.
By way of SDK’s, Token removes the necessity for companies to retailer buyer or financial institution particulars on website and integrates with industrial web sites to offer a ‘one click on’ checkout. It additionally collects buyer spend knowledge.
Other than the information platform, Token has developed an eponymous cryptocurrency, Token X, which they declare is the primary stablecoin designed for “immediate cost execution.” It runs on Stellar and Ethereum, however is designed to be ledger agnostic. In operate, TokenX performs like Fb’s Libra.
The token is backed 1:1 by fiat cash and has been independently audited to verify that property in escrow match the excellent stablecoins, the corporate alleges. Moreover, transactions utilizing TokenX are screened for AML and sanctions, and people buying or redeeming the forex are supposed to comply with KYC processes.
Token was based in 2015 by Steve Kirsch and at present works with four,001 banks, together with Tandem Financial institution, Assume Cash Group, An Publish, Sberbank Croatia and Slovenia, and Khaleeji Industrial Financial institution.
The agency raised $18.5 million in Collection A in 2017, and an extra $16.5 million in June 2019. Lovett stated Token plans on doing a Collection B spherical early subsequent yr.
The most recent spherical of funding will assist Token’s growth and connectivity to banks throughout Europe, in each open banking and digital cash options.
Coin financial institution picture by way of CoinDesk archives