Monerium, an Icelandic startup planning to issue asset-backed, redeemable, and regulated e-money on blockchains through a licensed institution, has raised $2 million in a seed funding round.
The round was led by Nordic VC fund Crowberry Capital, with the participation of blockchain software technology company, ConsenSys, and Hof Holdings.
Featuring a team packed with veterans involved with rebuilding Iceland's financial services following the 2008 crash, Monerium’s objective is to make currency accessible, secure, and simple to transact, bridging fiat money and blockchains.
Jón Helgi Egilsson, Monerium chairman and former chairman of the Central Bank of Iceland, says:
"In Iceland in 2008, a centralised financial system collapsed and almost caused a systemic economic meltdown. The ‘too-big-to-fail’ banking institutions were a single point of failure for deposits, lending, and payments.
"When compared to blockchains, the centralised banks which caused the crisis, are rooted in opposite philosophies of how we organise institutions and societies. They represent different worldviews and different risks to customers, investors, and society."
"Despite what happened in 2008, global finance is still largely dependent on centralised institutions and systems, and there remains a distinct lack of competition. We believe the solution is to bring about greater decentralisation.
"By becoming an asset-backed, regulated, and redeemable e-money provider for blockchains, Monerium will help to decentralise global finance, which will offer customers more options to store and send e-money, while simultaneously supporting financial stability."
The firm has applied to become a licensed financial services company in the European Economic Area through a wholly-owned subsidiary. The proceeds of the seed round will be used to accelerate the development of services.