Wednesday, 13 December, 2023

Pave Bank raises $5.2M to build the future of digital banking

Singapore-based startup Pave Bank has announced the completion of a $5.2 million funding round and it has just secured its first banking licence, courtesy of the regulatory authorities in Georgia, U.S.

Led by a team of banking executives turned fintech operators (including a founding member of Monzo), Pave Bank leverages blockchain technology to solve traditional banks’ pain points. 

The company is pioneering the idea of “programmable money” to transform the world of business transactions. Trust may be a common issue but programmable money will allow businesses to build in the necessary protection – so they can avoid the often convoluted traditional solutions such as letters of credit and escrow accounts.

Salim Dhanani, co-founder & CEO of Pave Bank said: “We have set out to address limitations of today’s financial system. That lacks transparency, remains restricted to certain time-windows (clearing and settlement, for example) and is riddled with intermediaries. All of this increases cost and management complexity. It also limits products and services which can be accessed by the majority of businesses, especially for those operating globally. In parallel, we have seen a number of innovative products that have been created in the digital asset space. But sometimes with a lack of regulation and safety for users. We are championing a new path. Pave Bank customers will get access to the financial products that they are used to. But also digital asset enabled products which will help them bank more efficiently within a regulated and secure environment.”

Dhanani added: “Programmable money and real-world asset tokenisation are creating a seismic shift in how the financial system will operate and what a future financial institution will look like. There are two major trends that led us to create Pave Bank. Firstly, blockchain is being integrated into the traditional financial system, with stablecoins, CBDCs included, and tokenised RWAs. We are seeing the financial system built on new operating languages for the first time in over fifty years. Secondly, regulation is here, it’s here to stay, and for the better. We are seeing this narrative evolve around the world. In Singapore, Hong Kong, Georgia, UAE, UK, across the EU and the green shoots in the USA, amongst many others. As a fully regulated digital bank with a proprietary technology stack, we are right at the swell of the programmable financial system wave.”

Guilherme Steinbruch, Partner at 468 Capital, commented: “Pave Bank is offering the world a glimpse into what we believe to be the future of banking and financial services. Large banks are riddled with legacy technology stacks. They don’t have a unified approach between traditional finance and regulated digital assets. Ultimately, we are witnessing a major shift in banking. Pave Bank stands out by enabling a whole range of products and services that can be brought to businesses globally.”