Fiat Republic, a BaaS startup working to simplify the process of crypto platforms connecting with bank transfer networks, has raised $7 million in a seed funding extension round.
Kraken Ventures, Fabric Ventures, Arca, and Inovo.vc joined the round as well as existing investors Speedinvest, Credo Ventures and Seedcamp. Fiat secured $3.5 million in financing in 2022.
The startup offers a single API integration coupled with a single compliance touchpoint, providing crypto platforms with access traditional transaction banking services, cutting the time and cost of processing fiat currencies.
The company is also building a coalition of crypto platforms to "transform the perception of cryptocurrencies in traditional financial circles and focusing them on seeking partnership rather than conflict".
Meanwhile, Fiat has been granted a full electronic money institution licence by De Nederlandsche Bank, enabling it to provide regulated financial services across the European Economic Area. This comes in addition to an EMI licence in the UK.
Adam Bialy, CEO, Fiat Republic, says: "With our newly acquired Dutch EMI licence, Fiat Republic will now operate across the entire European Union directly, providing e-money and payment services. Passporting from the reputable and credible jurisdiction of the Netherlands not only boosts our legitimacy in the traditional finance world, but also highlights our commitment to high compliance standards, security, and close collaboration with regulators.
"This move, to me, also signals that the Netherlands is open for business ahead of the upcoming MiCA regulation."