Riva Money has successfully raised $3 million in a pre-seed funding round aimed at enhancing its blockchain-powered technology for global money transfers. The funds will facilitate 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.
Established earlier this year, Riva Money is actively inviting businesses to join its waitlist, indicating a strong push towards market entry. The company employs a hybrid approach combining traditional payment routing with blockchain technology to optimize both the speed and cost of transactions. This innovative solution seeks to address the challenges often faced in cross-border payments, including unfavorable exchange rates and lengthy settlement periods typically associated with banks and financial institutions.
With the goal of modernizing business-to-business (B2B) payments, Riva Money utilizes blockchain technology alongside stablecoins and traditional fiat-to-fiat systems. This flexibility allows the company to adapt to the specific needs of clients based on their geographical location and other relevant factors.
Riva is also in the process of securing necessary regulatory approvals to operate as a payment institution in the United Kingdom and the European Union. Additionally, the company is pursuing a Markets in Crypto-Assets (MiCA) license in the EU and a virtual asset service provider (VASP) license in Switzerland.
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.”
The funding round was led by Malin Posern, partner and managing director at Project A, who emphasized the need for an “infrastructure rethink” as stablecoin adoption accelerates and regulatory frameworks evolve. Posern noted that Riva’s dual-rail system effectively addresses the demand for speed and flexibility in a market still heavily reliant on outdated processes.
Research from the PYMNTS Intelligence report, titled “The Treasury Management Playbook: Spotlight on Cross-Border Payments,” indicates that cross-border payments are currently undergoing a significant transformation. New solutions are emerging that offer cost-effective, real-time payment options, providing maximum visibility for both senders and receivers.
As Riva Money prepares for its global rollout, the company is positioned to play a pivotal role in redefining the landscape of international money transfers, catering to businesses looking for modern payment solutions that prioritize efficiency and transparency.
