Riva Money has successfully raised $3 million in a pre-seed funding round, aimed at enhancing its blockchain-based solution for global money transfers. The funding will facilitate the company’s rollout across Europe, Asia, and North America, allowing it to expand operations and bolster its engineering team, as announced in a press release on August 12, 2023.
Founded earlier this year, Riva Money is currently inviting businesses to join its waitlist. The company’s innovative approach combines traditional payment methods with blockchain technology to optimize payment speed and cost. The goal is to modernize business-to-business (B2B) payments by tackling the challenges posed by unfavorable exchange rates and slow settlement times often associated with conventional cross-border transfers.
Riva prioritizes flexibility in its payment solutions, utilizing both blockchain technology, including stablecoins, and traditional fiat-to-fiat systems. This dual-rail approach is tailored to meet the specific needs of clients based on their geographical location and other relevant circumstances.
Regulatory Framework and Market Positioning
In its push for compliance and operational efficiency, Riva is pursuing authorization as a payment institution in the United Kingdom and the European Union. The company aims to secure a Markets in Crypto-Assets (MiCA) license in the EU and a virtual asset service provider (VASP) license in Switzerland.
“Our solution combines blockchain technology with a robust regulatory framework to deliver the speed, transparency, and cost-efficiency businesses need to thrive in today’s interconnected economy,” said Niklas Hoejman, co-founder and CEO of Riva Money.
This funding round, led by Malin Posern, partner and managing director at Project A, reflects a growing optimism towards infrastructure innovation in the financial sector. Posern remarked that the timing is ideal for a “rethink” of financial systems, particularly as stablecoin adoption increases and regulatory frameworks mature.
Changing Landscape of Cross-Border Payments
The landscape for cross-border payments is evolving rapidly. A recent report titled “The Treasury Management Playbook: Spotlight on Cross-Border Payments” highlights a significant shift towards cost-effective, real-time payment solutions that provide enhanced visibility for both senders and receivers.
Riva Money aims to be at the forefront of this transformation, providing businesses with a modern, efficient alternative to legacy systems. With its recent funding and ambitious plans for expansion, the company is poised to play a pivotal role in the future of global money transfers.
