UK-based Fiat Republic, a web3 enabler assisting crypto platforms to access mainstream fiat services has just announced it has become an Electronic Money Institution (EMI) in the UK through its acquisition of London-based fintech Paybase. This acquisition will enable its platform to provide payment services and issue e-money to crypto platforms based in the UK, via its purpose-built, developer-friendly API. This news tags along $2.5M raised as part of an extension to its seed round which not only adds to the acquisition firepower but also assists in performing key organisational hires.
This round was led by Credo Ventures alongside participating investors SoftBank Investment Advisers’ Emerge Program, Connect Ventures and other strategic crypto startup investors and angels.
Incorporated less than a year ago
Since its founding last year in late June, Fiat Republic has grown its presence to first launching in the EU in March 2022. Following its acquisition of Paybase, the Web3 enabler is now live and fully regulated in the UK, making it the fastest specialist BaaS (Banking-as-a-Service) to go to market. This is impressive, especially as it’s happening amidst increasingly challenging global market conditions.
“The acquisition of our EMI licence 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 serve the needs of crypto platforms, whilst at the same satisfying the requirements of banks we partner with and those of the regulatory community”, commented Emily Harris, Fiat Republic’s Head of Compliance on the acquisition’s significance.
The investment in Fiat Republic importantly highlights the participating investors’ continued commitment to Web3 enabler infrastructure. It indicates the long-term bullish sentiment towards the space by investors despite the shorter-term pullbacks in crypto and wider global markets.
Founded by Adam Bialy, Martyna Lewinska and Sophie Guibaud in 2021, Fiat Republic platform brings together crypto-friendly banks which in turn enable crypto platforms to easily create accounts in multiple currencies and access local payment rails as well as FX via a single API built with a developer-first ethos. With a key emphasis on AML, compliance and security, Fiat Republic visions to more closely align traditional finance with crypto providers.
Their platform avails the much-needed connectivity to multiple global and local payment networks through a single integration. It also hasTradFi and crypto compliance built into its core. To its banking partners, the platform offers a real-time fiat-to-crypto transaction data feed which establishes trust between traditional financial institutions and the crypto industry.
What’s next for Fiat Republic?
The Fiat Republic team now consists of 25 people across 4 geographies (The UK, The Netherlands, Poland and Canada), with its first customers currently integrating with the platform. Fiat Republic is also in a strategic partnership with a leading US bank that will enable it to support its clients with USD accounts, ACH same day, cash wires and FX in the coming weeks.
The startup is also gathering a consortium of crypto platforms to gain strong representation with regulators to lead the setting of standards for the asset class and change its perception among traditional financial institutions.
