Singapore-based multi-asset and programmable bank Pave Bank has been launched with $5.2 million seed money.
The firm said in a statement on Thursday that the seed funding round was led by 468 Capital with participation from Quona Capital, Financial Technology Partners, BR Capital, w3.fund, Daedalus and angel investors.
It is noted that the firm has secured an approved digital banking license from Georgia.
It has started the regulatory journey with a digital commercial banking license in Georgia and plans to continue to build its regulatory infrastructure globally.
According to Pave Bank, Georgia is strategically positioned between Europe, the Middle East and Asia, with close ties to the European Union.
It said its robust and transparent regulatory architecture has attracted a large number of businesses as it seeks to become a financial services hub in the region.
“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,” said Salim Dhanani, Co-Founder and Chief Executive Officer of Pave Bank.
According to him, all of this increases costs, management complexity and also limits the products and services which can be accessed by the majority of businesses and 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 where Pave Bank customers will get access to the financial products that they are used to, but also a range of digital asset enabled products which will help them bank more efficiently within a regulated and secure environment,” he added.
As programmability in financial services takes off, Pave Bank offers a fresh, secure and regulated platform for businesses to transact in stablecoins, Central Bank Digital Currencies (CBDCs), and tokenized Real World Assets (RWAs).
The Pave Bank team likens this level of disruption in financial services to the way the smartphone disrupted the phone market.
“Programmable money and real-world asset tokenization are creating a seismic shift in how the financial system will operate and what a future financial institution will look like,” said Dhanani.
According to him, there are two major trends that led them to create Pave Bank.
“Firstly, blockchain is being integrated into the traditional financial system – with stablecoins, CBDCs included, and tokenized RWAs,”
He said the firm is seeing the financial system be 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,” he said.
He said the firm is seeing this narrative evolve around the world – in Singapore, Hong Kong, Georgia, United Arab Emirates (UAE), United Kingdom, across the European Union and the green shoots in the United States, 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,” he added.
According to the statement, the integration of blockchain technology to the regulated financial markets mirrors what the internet was to information and it will transform the financial system.
It said that blockchain projects like Onyx by JP Morgan and the new Global Layer One by the Monetary Authority of Singapore are beginning to drive meaningful change.
“Programmable banking represents the next stage in financial evolution. In the end, businesses care more about the value that is being brought to them with these technologies and less about the technologies themselves,
“With more businesses thinking and operating globally, the solutions that can be built with programmable money promise to transform banking, treasury, credit products, along with opening up a host of new products and services,” said Dhanani.
Pave Bank is a fully regulated commercial bank where clients can not only get the business banking products (such as multi-currency operating accounts, global payment connectivity, and treasury management solutions) but will also have access to multi-asset custody, virtual IBANs, safeguarding accounts and PaveNet.
The Pave Bank team believes that as the traditional financial world transforms with digital assets and the decentralized space transforms with regulation, regulated financial institutions will need to adapt to continue offering the most competitive products and services to their clients.
It opined that this shift is not a user experience shift, it is a change of the very nature of money and value, for which Pave Bank is built.
“Pave Bank is offering the world a glimpse into what we believe to be the future of banking and financial services,” said Guilherme Steinbruch, Partner at 468 Capital.
“Large banks are riddled with legacy technology stacks and don’t have a unified approach between traditional finance and regulated digital assets,
“Ultimately, we are witnessing a major shift in banking and Pave Bank stands out by enabling a whole range of products and services that can be brought to businesses globally,” he added.
Steve McLaughlin, Founder and Chief Executive Officer at Financial Technology Partners, said that having observed innovative companies in the financial services industry for over two decades, Pave Bank is a prime example of a transformative company.
“In terms of leadership, product vision and commitment to customer value, we see Pave Bank as leaders in the space,
“We take pride in having supported their journey so far and eagerly anticipate the continuation of our partnership through their upcoming fundraising endeavors,” he added.
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