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Coinflow Raises $2.2 Million to Build Financial Blockchain Technology
Instant settlement payment provider Coinflow Labs raised $2.25 million in seed funding.
The company said that this round of financing announced On Tuesday (May 28), it will help it strengthen its payment infrastructure solution, designed to reduce the time it takes merchants to receive payments.
“Typically, merchants who accept cards experience several business days of delays before settlement, putting a strain on their business,” Coinflow said in a press release. “Coinflow offers merchants the ability to receive their money instantly. Coinflow provides a complete payment stack that includes chargeback-free payment acceptance with instant stablecoin settlement.”
Additionally, the company offers an instant funds disbursement product, which allows businesses to instantly pay funds from stablecoins to their users’ bank accounts via real-time payment channels such as Visa Direct, RTP® Network via The Clearing House, and SEPA Instant .
“Against a backdrop of unprecedented market volatility and uncertainty across the entire global financial system, there is a unique opportunity to bring efficiency, security and trust to payment systems, especially in the evolving web3 space,” he said Daniele Levico-founder and CEO of the company.
“We developed Coinflow to bridge the gap between traditional finance and blockchain technology, bringing together the best parts of both to create a value-added service for merchants that enables instant settlement,” Lev added.
Writing about the growing use of stablecoins last month, PYMNTS noted that this digital currency can help businesses “access immediate settlement and liquidity without relying on intermediary banks or payment processors”, which “can optimize cash flow management and reduce dependence on traditional banking infrastructure”.
And because every transaction conducted using stablecoins is recorded on the blockchain, providing an irrefutable audit, CFOs and treasurers can enjoy increased compliance, reduced fraud, and streamlined auditing.
As noted here in February, blockchain advocates underlying technical capabilities they are eager to separate the technology from its associations with cryptocurrency.
“This is partly why, as the digital economy continues to grow, the adoption of stablecoins in traditional payments appears to be growing with it.” PYMNTS he wroteusing the example of Stripes recent announcement that it plans to begin support global payments via stablecoins as soon as this summer.
We saw it again this spring PayPal and cross-border money transfer service Xom collaborate to enable users to create international transactions using PayPal’s USD stablecoin, which launched last year.
Also in April blockchain and cryptocurrency companies Ripple has disclosed its plans to introduce a Stablecoin pegged to the dollar 100% backed by U.S. dollar deposits, short-term U.S. Treasury securities and other cash equivalents.
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