Transparent Financial Systems, a Seattle-based startup building cryptographic settlement technology has come out of stealth mode after raising more than $14 million in a Series A round led by Patnera Capital and joined by Square.
Future\Perfect Ventures, Ideo Colab Ventures, Digital Currency Group, and CMT Digital also joined the round, which follows an $8 million seed financing from Vulcan Capital in 2018.
Transparent Systems began at Vulcan in early 2018 at the direction of the late Microsoft co-founder Paul Allen, along with Shawn Johnson, the former chairman of the investment committee of State Street Global Advisors.
It was spun out later that year, working to build seamless on-demand 24/7 settlement solutions, using cryptographically-secured distributed networks to reduce the friction in making and receiving payments.
The startup is already concluding its beta programme with a group of unnamed financial services firms and fintech firms in the US, demonstrating on-demand settlement of USD between multiple participants.
It says it is on track to open up its network for evaluation, testing, and initial commercial use in 2020 and will use the new funding to accelerate product development, engineering and overseas expansion.
“Square believes that blockchain represents a path towards a more robust, safe, and empowering future for all participants in the economy - from individuals to businesses,” says Mike Brock, strategic development, Cash App at Square. “We are excited to work with Transparent Systems to bring that vision to the financial system.”