Riva Money has successfully raised $3 million in a pre-seed funding round aimed at launching its blockchain-powered solution for global money transfers. The funding will primarily support the company’s expansion into Europe, Asia, and North America, as well as bolster its engineering team, according to a press release issued on August 12, 2023.
Founded earlier this year, Riva Money invites businesses to join its waitlist as it prepares for a broader market entry. The company has developed a dual-rail payment system that integrates traditional and blockchain-based routing, optimizing both speed and cost for international transactions. This approach seeks to modernize business-to-business (B2B) payments, addressing challenges associated with unfavorable exchange rates and slow settlement times typical of cross-border transfers that rely on traditional banks and financial institutions.
The innovative solution allows Riva to facilitate international payments using either blockchain technology, including stablecoins, or conventional fiat-to-fiat methods, depending on what best suits the client’s location and specific needs.
Regulatory Framework and Strategic Goals
Riva Money is actively pursuing regulatory approval as a payment institution in the United Kingdom and the European Union. It aims to secure a Markets in Crypto-Assets (MiCA) license in the EU and a virtual asset service provider (VASP) license in Switzerland. This focus on regulatory compliance is key to the company’s strategy, as it seeks to provide businesses with a reliable platform for international transactions.
According to Niklas Hoejman, co-founder and CEO of Riva Money, “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.” His vision highlights the necessity of modernizing financial infrastructure to meet evolving market demands.
Market Context and Future Outlook
The timing for Riva’s launch appears favorable, as indicated by insights from Malin Posern, partner and managing director at Project A, which led the funding round. He noted that the acceleration of stablecoin adoption and the maturation of regulatory frameworks create an opportune environment for rethinking financial infrastructure. Posern stated, “Riva’s dual-rail system for businesses elegantly solves for both speed and flexibility in a market that’s still reliant on legacy processes.”
A recent report from PYMNTS, titled “The Treasury Management Playbook: Spotlight on Cross-Border Payments,” illustrates the ongoing transformation in the cross-border payments landscape. New solutions are emerging that offer cost-effective, real-time options, enhancing visibility for both senders and receivers.
As Riva Money prepares for its next steps, the company’s innovative approach to payment solutions could significantly impact the way businesses conduct international transactions, ultimately fostering a more efficient and transparent financial ecosystem.