BVNK Secures $40 Million in Cryptocurrency Banking Services

cryptocurrency startup BVNK (pronounced ‘bee-vee-en-kay’) closed its $40 million Series A funding round with an ex post valuation of $340 million. Interestingly, Tiger Global is leading the round despite the news as it lost $17 billion during this year’s tech stock sell-off.

Other investors in today’s funding round include The Raba Partnership, Avenir, Kingsway Capital, Nordstar, Concentric, Base Capital and various business angels. BVNK signed a tenure sheet last month.

BVNK provides banking and payment services for cryptocurrency-based businesses. Companies using BVNK can accept payments in both fiat and cryptocurrencies, hold hundreds of different currencies and crypto assets, and send funds worldwide.

Prior to offering this product, the BVNK team worked on a consumer platform. It was a more traditional cryptocurrency exchange focused on emerging markets and remittances.

“We originally started a retail business and now we are a purely B2B business. We spent the last year looking for the best talent in the cryptocurrency space. BVNK’s co-founder and CEO, Jesse Hemson-Struters, currently employs 120 people.

We’re having a very bad week for cryptocurrencies right now, but many companies are looking for ways to start supporting cryptocurrencies in some way. However, it was a difficult process because many banks around the world simply do not want to work with cryptocurrencies.

Co-Founder and Chief Product Officer George Davis said, “Financial services are not really built for cryptocurrencies.”

BVNK is targeting both cryptocurrency-focused companies, such as “payment companies forced to accept cryptocurrencies,” Davis said.

The main way to get new customers is through banking. You can use BVNK to replace some of your existing bank accounts. You can buy, sell, send, and receive fiat currencies such as EUR, GBP, USD and cryptocurrencies such as BTC, ETH and USDC from your BVNK account.

On top of that, BVNK has built a payment service. It is a way to collect payments in cryptocurrency, and it is a fiat-to-crypto entryway for those looking to buy cryptocurrency assets. Businesses using BVNK can leverage this API with their own customers.

BVNK Moon Pay. If you are unfamiliar with MoonPay, this is a popular entry API for other products. For example, many cryptocurrency wallets include MoonPay in their apps to allow users to purchase crypto assets with a debit card.

BVNK believes it can create a cheaper alternative thanks to open banking. Instead of relying on debit cards, BVNK asks people to log in with their bank account information and start paying immediately from there. In this way, BVNK saves on card processing fees.

So far, BVNK has attracted about 120 customers. Hemson-Struters said, “We were profitable in the business.” The company says it is currently processing over $2 billion in annual payments.

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