Series Seed Round Led by CMT Digital with Participation from Reciprocal Ventures, Jump Crypto, Draper Dragon, Digital Currency Group, Among Others
Coinflow Labs (“Coinflow”), an instant settlement payment provider, today announced the closing of its $2.25M seed round. The round was led by CMT Digital with participation from Reciprocal Ventures, Jump Crypto, Draper Dragon, Digital Currency Group [and various angel investors]. This round follows a pre-seed round Coinflow raised in early 2023 with the majority of their investors doubling down on the team.
Coinflow Labs’ innovative payments infrastructure solution aims to reduce the time it takes for merchants to receive payments. Typically, merchants who accept cards experience multiple business days of delay before settlement, causing strain on their business. Coinflow offers the ability for merchants to receive their money instantly. Coinflow provides a comprehensive payment stack that includes chargeback-free payment acceptance with instant settlement in stablecoins. Additionally, Coinflow offers an instant fund disbursement product, allowing businesses to instantly pay out funds from stablecoins to their users’ bank accounts using real-time payment rails such as Visa Direct, RTP via the clearing house, and instant SEPA.
Currently, Coinflow’s products are live on multiple blockchains utilizing these networks as the settlement layer. Coinflow has over 50 merchants live and is quickly growing. Coinflow’s volume processed has grown over 100% in the last quarter and since being live in the market in early 2023, hasn’t seen any customers leave Coinflow for another provider. Coinflow has secured partnerships with multiple US banks for payment processing and fund disbursement services. The company’s payment acceptance product allows merchants to accept payments in 170+ countries and the fund disbursement product is live across the US & EU with additional jurisdictions coming in 2024.
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“Amid unprecedented market volatility and uncertainty across the entire global financial system, there exists a unique opportunity to bring efficiency, security, and trust to payments systems, especially within the evolving web3 space,” said Daniel Lev, Co-Founder and CEO of Coinflow Labs. “We developed Coinflow to bridge the gap between traditional finance and blockchain technology, bringing together the best parts of both to create a value-added service for merchants enabling instant settlement. With the support of our investors and partners, we look forward to onboarding additional customers and building FinTech 2.0, the next generation of financial blockchain technology where merchants get paid quicker.”
“We’re impressed with Coinflow’s innovative use of blockchain technology to facilitate instant settlement and payment solutions,” said Sam Hallene, Investment Partner at CMT Digital. “Coinflow bridges the gap between web3 and traditional web2 systems, making it easier for web3 products to integrate and enhancing financial operations for web2 companies. In alignment with CMT Digital’s mission to invest in blockchain technologies that are reshaping global markets, we’re thrilled to support the Coinflow team as they revolutionize the landscape of commerce and financial technology.”
Coinflow’s funding will enable the company to further service more merchants in additional verticals, expand jurisdictions, further develop the product, and hire additional key team members.
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