Riva Money Secures $3 Million to Revolutionize Global Transfers
Riva Money, a newly established fintech company, has raised $3 million in a pre-seed funding round to advance its innovative blockchain-based solution for global money transfers. The funding aims to facilitate the company’s rollout across Europe, Asia, and North America, expand its operational capabilities, and enhance its engineering team, as announced in a press release dated August 12, 2023.
Founded earlier this year, Riva Money is currently inviting businesses to join its waitlist, as highlighted on its website. The company integrates traditional payment methods with blockchain technology to optimize the speed and cost of each transaction. This dual approach is intended to modernize business-to-business (B2B) payments, tackling challenges such as unfavorable exchange rates and slow settlement times associated with cross-border transactions managed by banks and financial institutions.
Riva’s solution leverages blockchain technology, including the use of stablecoins, alongside conventional fiat-to-fiat payment systems. This flexibility allows Riva to select the most suitable option for clients based on their geographical location and transaction needs. The company is also in the process of obtaining regulatory authorization as a payment institution in the United Kingdom and the European Union, as well as pursuing a Markets in Crypto-Assets (MiCA) license and a virtual asset service provider (VASP) license in Switzerland.
Niklas Hoejman, co-founder and CEO of Riva Money, stated, “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.” This emphasis on regulatory compliance reflects the company’s commitment to creating a secure and reliable payment infrastructure.
The funding round was led by Malin Posern, partner and managing director at Project A, who noted that the current market conditions are ripe for an “infrastructure rethink.” He emphasized that the accelerating adoption of stablecoins and the maturation of regulatory frameworks present a unique opportunity for innovation. “Riva’s dual-rail system for businesses elegantly solves for both speed and flexibility in a market that’s still reliant on legacy processes,” Posern remarked.
Research supports the notion that cross-border payments are evolving rapidly. A report from PYMNTS Intelligence, titled “The Treasury Management Playbook: Spotlight on Cross-Border Payments,” highlights that new solutions are providing cost-effective, real-time payment options that maximize visibility for both senders and receivers.
As Riva Money progresses with its plans, the company aims to position itself as a leader in the global payments landscape, combining cutting-edge technology with essential regulatory measures to meet the demands of businesses in an increasingly interconnected world.
