Riva Money, a new cross-border payments fintech founded by alumni from Wise and Revolut, has raised $3m (£2.2m).
Founded earlier this year, Riva Money is aiming to use blockchain technology to streamline the process of international payments.
The company’s stated mission is to address the high costs and slow settlement times associated with cross-border transactions.
Though co-founders Niklas Hoejman and Mahendra Katoch have worked at fintechs that have already made significant strides to modernise the international movement of funds, the two claim that even while at innovative firms, they saw legacy systems causing delays, inflated costs and offering limited transparency.
Riva’s approach to payments is centred around stablecoins – blockchain-based assets pegged to the value of other assets such as fiat currencies.
As the company explains, depending on what the most effective option for a given client and transaction is, the payment will be routed either via blockchain-based or traditional rails. Riva claims it is the flexibility that will ensure customers get the best option for their transfers.
Stablecoins are increasingly being seen as a more efficient system of moving funds digitally due to the limited number of intermediaries required and the 24-hour nature of the blockchain compared with wire transfers that can be subject to banking hours.
There have been increasing moves to bring stablecoin technology to the mainstream in countries including the US and UK.
“Our mission is simple: to enable businesses’ limitless global money movement, instantly and at a fraction of the cost,” said Hoejman.
“By combining blockchain technology with a robust regulatory framework, we’re building a solution that offers businesses the speed, transparency and cost-efficiency they need to thrive in today’s interconnected economy.”
The pre-seed funding round was led by Project A, which in June raised £278m for a European tech investment fund.
“With stablecoin adoption accelerating and regulatory frameworks maturing globally, the time is right for an infrastructure rethink,” said Malin Posern, partner and managing director at Project A.
“Riva’s dual-rail system for businesses elegantly solves for both speed and flexibility in a market that’s still reliant on legacy processes.
Also participating in the round were angel investors from firms including Revolut, Monzo and JP Morgan.
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