DeFi Neo-Banking Platform Scallop Raises $2.5 Million
Scallop is on the verge of completing its $2.5 million seed funding round led by Blackedge Capital. The funding round has also attracted investments from several institutional and angel investors, including X21 Capital. Solidity Ventures, Bitcoin.com, and Magnus Capital, amongst others, according to a press release on August 16, 2021.
Scallop Raises $2.5m to Accelerate DeFi Accessibility
Despite the growing popularity of decentralized finance (DeFi), there is still a huge gulf between the burgeoning DeFi space and the world of traditional finance, in terms of regulation, easy & frictionless accessibility, amongst other bottlenecks.
In a bid to eliminate some of these challenges and significantly bridge the gap between DeFi and traditional finance, Scallop, an innovative DeFi neo-banking app and financial technology ecosystem regulated by Estonian authorities, has raised $2.5 million.
As stated in a press release shared with BTCManager, the funding round was led by Blackedge Capital, a crypto-friendly investment company that backs several successful blockchain projects, including Coti and Public Mint, with a plethora of highly reputed investors such as MahaDAO, ZBS Capital, J8 Ventures, Marketcross, Amesten Capital, Magnus Capital, and Bitcoin.com, also participating in the seed round
The Scallop Advantage
Scallop claims to be focused on offering its users DeFi-powered banking solutions in an all-in-one account that enables them to manage their cryptoassets and fiat in a faster, more efficient, and secure manner, thereby making people’s day-to-day lives more manageable, while also bringing crypto a step further into the mainstream.
With Scallop accounts, users will be able to pay for goods, set up direct debits, send or receive cross-border payments, and more. Scallop also comes with an in-built non-fungible tokens (NFT) marketplace where users can easily buy or sell their crypto-collectibles securely. And on top of that, Scallop users will also be able to earn the best interest rates from DeFi protocols like Compound and Aave.
Importantly, Scallop has already secured a license from Estonia’s financial regulators and the team claims it’s also on the verge of getting regulated by the UK’s Financial Conduct Authority (FCA) as an EMD for an Electronic Money Institution (EMI). That’s not all, Scallop says it’s also in talks with authorities in Europe to get it regulated as an Electronic Money Intermediary.
In essence, Scallop’s services will not be available to investors in the United States for now.
Raj Bagadi, CEO and Founder at Scallop, said:
“Scallop’s mission is to accelerate the global transition to a more decentralized and equitable financial system. Therefore, there is a requirement for a banking infrastructure that bridges the crypto and fiat worlds. Scallop will allow its users to use their digital assets in the real world for the very first time. This is a major step for any foreseeable future of crypto, without using crypto in the same way as fiat, the future is limited.”
The Scallop ecosystem will be powered by ARTH token.