BNP Paribas and Octopus Ventures Lead $16.5 Million Funding Round for Token Stablecoin Banking Startup
Opera Tech Ventures, a subsidiary of BNP Paribas, and Octopus Ventures have led a $16.5 million funding round for Token, a stablecoin open banking platform. Token becomes the latest entrant in the expanding field of digital payment solutions utilizing elements of cryptocurrency and blockchain technology.
Token Stablecoin Open Banking Platform
In a press release published by FINSMES, Token announced the success of their capital raising round, achieving a total of $16.5 million in funding.
According to the press statement, BNP Paribas, via its venture arm, Opera Tech Ventures, Octopus Ventures, and EQT Ventures were some of the investors in the startup.
Token hopes to facilitate instant and low-cost cross-border payments using stablecoins. The project aims to create a single infrastructure for direct interbank payments via an open banking API.
Details included in the press release say Token will use the funds raised to increase the penetration of its open banking network. The startup says it already has more than 4,000 banks connected to its stablecoin payment platform.
Furthermore, global card payments giant Mastercard has reportedly tapped Token to become one of the collaborators on the connectivity layer backend of its open banking infrastructure.
The Emerging Digital Payments Arena
With this announcement, the U.S. and U.K.-based Token becomes the latest player in the emerging blockchain-based digital payments landscape. In 2019 alone, Wall Street giant JPMorgan Chase and U.S. card payments behemoth Visa have unveiled similar projects.
Earlier in the year, JPMorgan announced the launch of its cryptocurrency for internal settlements for its institutional clients. The bank became the first from Wall Street to create its cryptocurrency token.
In June 2019, Visa finally debuted its B2B Connect platform which had been in development since 2016. According to reports, Visa created the platform in collaboration with IBM on the Hyperledger Fabric, an opensource blockchain platform operated by the Linux Foundation.
Visa says its platform will be for institutional cross-border payments with a transaction throughput between 24 to 48 hours. Also, major banks across the U.S., Europe, and Asia have created a network that utilizes stablecoins for interbank settlements.
Under the aegis of the Fnality Consortium, these banks will use utility settlement coins (USCs), otherwise known as fiat-pegged stablecoins to effect interbank transfers among participants. All of these projects also have to compete against Ripple, which continues to make efforts to expand its presence in the global payments arena.