Seattle-based startup Transparent Financial Systems is developing a "real-time" decentralized payment settlement network, and the company has completed a $ 14 million Series A funding round.
This round of funding was led by Pantera Capital, with Twitter co-founder Jack Dorsey's Square, Digital Currency Group (DCG), Future / Perfect Ventures, IDEO Colab Ventures, and CMT Digital participating.
A round of financing brings the total financing amount of Transparent to USD 22 million. The company had raised $ 8 million in seed funding from Vulcan Capital in July 2018.
Transparent CEO Alex Fowler said the new funding will be used to expand the team, including hiring enterprise software engineers and accelerating product development. He declined to disclose the company's Series A valuation.
Transparent was founded in early 2018 under the umbrella of Vulcan Inc., a private company founded by Microsoft's late co-founder Paul Allen. In July of the same year, Transparent became an independent entity, and the company's goal was to "reform" the cash settlement process.
"We are building a new, cryptographically secure, real-time settlement solution that eliminates transaction costs and frictions associated with traditional payment channels. Our decentralized network eliminates the single point of control that hinders the current financial system. To settle time limits and transaction expenses. "
Fowler declined to say whether Transparent is building its own private blockchain network or building on existing public or private blockchains. "In the coming months, we will express more opinions on our products."
Transparent said that it is currently completing test projects with "a few large financial services and fintech companies" in the United States, but did not disclose specific corporate information.
"Our first product focuses on B2B (inter-enterprise) payments and financial management, enabling the company to directly manage real-time dollar settlements while reducing financial risk."
Transparent said it is "on the right track" and will open its network this year for testing and initial commercial use.
Fowler said the company currently has 25 employees, most of whom are engineers. He also added that the company has made a "significant investment" that places the Rust programming language at the center of development efforts.
Mike Brock, head of strategic development for the Square Cash App, said:
"Blockchain provides a path to a healthier, safer and more capable future for all economic actors, from individuals to businesses. We are excited to partner with Transparent Systems to bring this vision to finance system."