Fiat Republic, a London-based banking-as-a-service (BaaS) platform seeking to bridge the gap between third-generation web (Web3) and traditional banks, is now an electronic money institution (EMI) in the United Kingdom.
Fiat Republic said it became an EMI through its acquisition of Paybase Limited, a payments solution for platform businesses.
The acquisition, the BaaS firm explained, enables it to provide payment services and issue e-money to UK-based crypto platforms through its “purpose-built developer-friendly application programming interface.”
“The acquisition of our EMI license via Paybase Limited is a significant milestone for Fiat Republic, and will allow us to engage in the provision of regulated financial services in the UK to better service the needs of crypto platforms, whilst at the same [time] satisfying the requirements of banks we partner with and those of the regulatory community,” said Emily Harris, the Head of Compliance at Fiat Republic.
‘A Connective Tissue Between Crypto and Banking’
Additionally, Fiat Republic disclosed that it has raised $2.5 million as part of an extension seed round.
It noted that the funding round was led by Credo Ventures, with participation from SoftBank Investment Advisers’ Emerge Program, Connect Ventures and other strategic crypto platform investors and angels.
Fiat Republic said the fund will be used to expand its team and fund the acquisition of Paybase Limited.
“The investment demonstrates the participating investors’ continued commitment to web3 ‘enabler’ infrastructure, and a long-term bullish sentiment towards the space, despite the shorter-term pullbacks in crypto and wider global markets,” the BaaS firm explained in a statement shared with Finance Magnates.
Adam Bialy, the CEO and Co-Founder of Fiat Republic, noted that the investment is a strong validation of the company’s vision to become “ the connective tissue between the worlds of banking and crypto.”
Bialy added, “There is a huge opportunity at the intersection of crypto and banking with more than $1trillion in crypto-fiat volume traded annually, and we believe that through our technology and systemic approach to compliance we are uniquely positioned to unlock it for our partners.”
Fiat Republic further disclosed that it has signed a strategic partnership with a leading US bank.
It added that the collaboration will enable both partners to “support their clients with USD accounts, Automated Clearing House same day, wires, and FX in the coming weeks.”
Consortium of Crypto Platforms
Moreover, Fiat Republic disclosed that it is creating a consortium of crypto platforms to get strong representation with regulators.
It noted that the goal is to lead the standard-setting for cryptocurrencies and change its perception among traditional financial institutions.
Fiat Republic, which was first launched in the European Union region in March 2022, wants to “radically improve access to banking and payments for crypto platforms.”
The fintech company says its platform offers the much needed connectivity to multiple global and local payment networks through a single integration.
It further noted that it has traditional finance and cryptocurrency compliance built into its core.
