Lending Platform Vauld Raises $2M to Develop Right into a Full Crypto Financial institution
Singapore-based lending platform Vauld raised $ 2 million led by Pantera Capital to become a full crypto bank. Other investors include Coinbase Ventures, LuneX Ventures and individual investors like Robert Leshner from Compound Finance.
So far, Vauld has gained a foothold in India, where a positive court decision earlier this year sparked a spate of crypto activity.
“Attitudes are the focus of the hour in the Indian market,” said Vauld co-founder and CTO Sanju Sony Kurian in a statement.
The company, formerly known as the Bank of Hodlers, will leverage the funds to move from credit and credit to a holistic banking platform that includes payments and trading. Vauld is also trying to expand its presence in Europe and the US
“We are seeing institutional capital entering the crypto space with the expectation that bank integrations will complement crypto loan offerings,” CEO Darshan Bathija said in a statement.
The company’s immediate goals include implementing an over-the-counter (OTC) desk, fiat and crypto order books, and debit and credit cards for multiple countries. The goal is for users to do all of their banking on one blockchain.
Vauld intends to expand licensing to international crypto hubs such as Singapore and the UK over the next 24 months. Bathija telegram to CoinDesk that his company was also reviewing Wyoming following the precedent set by Kraken Financial and Avanti Financial.
It did so after a year of two bank deeds approved by the Wyoming State Banking Board, giving Kraken and Avanti official status as chartered banks in the state. Vauld sees a higher demand for banking functions for crypto assets.
According to Bathija, most regulators want companies to first demonstrate that they have the governance structure in place to ensure compliance, given how new crypto companies are in general. They urge companies to get licenses for loans and money transfers first and “wait a year before we start applying for banking licenses,” he said.
Since its previous investment of $ 500,000 by LuneX Ventures and some angel investors in June, Vauld has grown 950% according to the company. Bathija said this was “a clear indication that yield products are valued and expected both in the US and abroad”.
Investor Paul Veradittakit, a partner at Pantera Capital, said in a press release that his company is excited about “Vauld’s vision of making cryptocurrencies the banking of choice by making it easy to use and interoperable with current banking infrastructure.”