Token, a San Francisco and London-based open banking platform, raised $16.5m in funding from distinguished tech funds together with Opera Tech Ventures, the enterprise arm of BNP Paribas, Octopus Ventures, and EQT Ventures, based on 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 keep communication with banks for information and/or cost,” mentioned 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 mentioned it assists banks combination consumer account info from a number of exterior sources, provoke bank-direct funds, and scale back the price of cost acceptance.
An API additionally offers compliance with PSD2 obligations, a regulatory directive within the EU.
By SDK’s, Token removes the necessity for companies to retailer buyer or financial institution particulars on web site and integrates with business web sites to offer a ‘one click on’ checkout. It additionally collects buyer spend information.
Aside from the information platform, Token has developed an eponymous cryptocurrency, Token X, which they declare is the primary stablecoin designed for “prompt 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 substantiate that belongings 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 the moment works with 4,001 banks, together with Tandem Financial institution, Assume Cash Group, An Publish, Sberbank Croatia and Slovenia, and Khaleeji Business Financial institution.
The agency raised $18.5 million in Collection A in 2017, and a further $16.5 million in June 2019. Lovett mentioned Token plans on doing a Collection B spherical early subsequent yr.
The newest spherical of funding will help Token’s enlargement and connectivity to banks throughout Europe, in each open banking and digital cash options.
Coin financial institution picture by way of CoinDesk archives