Transparent Financial Systems, Inc., a Seattle-based startup developing on-demand cryptographic settlement solutions, announced it has closed over $14 million in Series A funding.
The Series A round is led by Pantera Capital with participation from Square, Inc., Future\Perfect Ventures, IDEO Colab Ventures, Digital Currency Group, and CMT Digital; in addition to the $8 million in seed funding by Vulcan Capital in July 2018.
Pantera and Future\Perfect will also join Vulcan on Transparent’s Board of Directors.
“Blockchain technology is rooted in decades of advances in distributed systems and cryptography, and it’s at the center of banking and financial innovation today; based on Transparent’s strategic partnerships and solution, we believe this investment represents an exciting opportunity and will provide tremendous value to the future of on-demand settlements.”
– Joey Krug, Co-Chief Investment Officer, Pantera
The heavily-funded Seattle startup is finally ready to unveil its first product, which supports real-time, business-to-business payments using a system secured by blockchain technology.
Transparent spun out of Vulcan Inc. in early 2018 at the direction of the late Paul Allen, co-founder of Microsoft. It finished beta testing its business-to-business payment product three months ago. Financial institutions in the United States are Transparent’s initial target customers. The startup’s goal is to replace existing payment networks, with a faster and less expensive option.
Transparent says blockchain’s distributed ledger technology minimises the financial risks traditionally associated with instant payments.
The startup achieved a few key milestones in 2019, including several demonstrations of on-demand settlement of USD between multiple financial services firms, fintechs, and banks. The company is on track to open up its network for evaluation, testing, and initial commercial use in 2020. It says it is on track to open up its network for evaluation, testing, and initial commercial use in 2020 and will use the new funding to accelerate product development, engineering and overseas expansion.