Iceland-based fintech firm Monerium has raised $2m in seed round from ConsenSys, Crowberry Capital, and Hof Holdings to issue e-money on blockchains.
Image: Monerium and ConsenSys team-members. Photo: Courtesy of Monerium.
Monerium stated it plans to make currency accessible, secure and simple to transact.
By issuing asset-backed, redeemable and regulated e-money on blockchains through a licensed institution, the fintech firm aims to make blockchains more relevant and useful for mainstream financial institutions, corporations, and consumers.
The seed funding round was led by the Nordic VC fund, Crowberry Capital.
Monerium CEO Sveinn Valfells said: “Monerium has a clear vision to bridge fiat money and blockchains. It was when working with ConsenSys shortly after the launch of Ethereum, that we first identified e-money as a key catalyst for mainstream blockchain adoption. This investment, and the continued partnership with ConsenSys – alongside the backing from Crowberry Capital and Hof – is a clear indication that we are on course to achieve our goals.”
Before this seeding round, the firm submitted an application to become a licensed financial services company in the European Economic Area through a subsidiary. Money from this round of financing will be used to accelerate the development of the company’s services.
The fintech was established in 2016. The idea behind the company was first conceived when the founding team was commissioned by a Nordic bank to author a report on ‘Blockchain and the future of finance’.
The report listed use cases of blockchain in traditional finance, and analysed the effects of distributed ledgers on banking sector.
In the report, the founders identified that fiat money could act as a key catalyst for mainstream blockchain adoption and included a use case for issuing fiat money on the Ethereum blockchain, designed in collaboration with ConsenSys.
ConsenSys Capital co-founder Andrew Keys said: “We are thrilled to be backing cutting edge technology that is democratising financial services and making finance safer in a regulated and redeemable way. We remain impressed by the team that has in-depth understanding of the power of blockchain and a clear vision of how it can benefit the future of finance.
“ConsenSys is dedicated to supporting companies building the infrastructure needed for a more decentralized and self-sovereign future. Monerium’s work in tokenizing currencies across Europe is an exciting endeavor we’re glad to be a part of.”