Singapore-based lending platform Vauld is planning to offer cryptocurrency banking services after raising $2 million in its latest funding round
Cryptocurrency lending platform Vauld raised $2 million in a bid to become a full crypto bank. The company’s latest investment round was led by Pantera Capital. The funds would allow Vauld to expand its team and become a cryptocurrency bank in India.
Vauld is planning to become one of the leading cryptocurrency companies in India and other markets. The company, previously known as Bank of Hodlers intends to use the funds to expand its operations. Vauld would expand from a lending and borrowing platform to launch banking services including trading and payments.
In addition to hiring more staff and expanding its cryptocurrency services, Vauld also wants to broaden its presence in Europe and the United States. CEO Darshan Bathija said the influx of institutional investors into the crypto space has created the need for banking integrations to complement cryptocurrency credit offerings.
To expand its crypto services to Europe and the United States, Vauld would be implementing an over-the-counter (OTC) desk, crypto and fiat order books, and debit and credit cards for various countries. The aim is to allow users to conduct all their banking activities through blockchain.
Vauld wants to start expanding its cryptocurrency services to crypto hubs like Singapore and the United Kingdom. Over the next 24 months, Vauld would set up a presence in those countries and Wyoming in the United States.
Vauld chose Wyoming due to the state’s crypto-friendly nature. The Wyoming State Banking Board has previously approved official status as chartered banks to Kraken Financial and Avanti Financial.
According to the CEO, most regulators want crypto businesses to set up an excellent governance structure to operate in full compliance with the law. The regulators urge companies to acquire lending and money transmission licenses first and operate for a year before applying for a banking license.
LuneX Ventures, Coinbase Ventures and individual investors, including Robert Leshner of Compound Finance, joined Pantera Capital in this latest funding round.
The CEO revealed that Vauld saw a 950% growth since its earlier investment of $500,000 from LuneX Ventures and some angel investors earlier this year. Bathija believes the growth is a clear sign that yield products are valued and expected in the United States other regions.