DeFi neo-banking app Scallop to close its $2.5M funding round

Mon 16 Aug 2021 ▪ 20h23 ▪ 3 min de lecture - par Katie Donaldson

The end of its first investment round is approaching for the first ever regulated DeFi Neo-banking app, Scallop. Groups of both institutional and angel investors participated in the round led by Blackedge Capital. The project has raised $2.5 million (~£1.81 million).

The strategic funding round was attended by numerous high-profile investors, including X21 Capital, Bitcoin.com, Magnus Capital, Amesten Capital, Marketcross, ZBS Capital, Solidity ventures, J8 ventures, and MahaDAO. Furthermore, Blackedge Capital has added Scallop to its portfolio of notable blockchain startups. The portfolio already contains companies Public Mint and Coti.

Scallop was created for users to trade the ARTH token, which helps the developers create the first inflation-proof bank account.

The new funding will help the company with improving its banking system, as well as building an easy two-way exchange between cryptocurrencies and fiat money. 

CeFi mixed with DeFi

Scallop’s founders are inspired by their vision of decentralized finance integrated with decentralized finance (DeFi). This will potentially popularise cryptocurrencies even more and revolutionise the world of finance. Scallop’s clients will be able to pay for commodities, setting up direct debits, and sending or receiving international money transfers. This functionality will be accessible to users across both centralised finance (CeFi) and DeFi, creating a powerful solution to improve global financial equality. 

The startup is licensed to provide virtual currency exchange and wallet services by Estonian financial regulators. Under process to get regulated by FCA as an EMD for an Electronic Money Institution (EMI) in the UK and as Electronic Money Intermediary in Europe, Scallop provides traditional banking services using cryptocurrencies. It’s important for the company to keep the crypto side of the business legitimate and crystal clear.

Next generation banking system

“Scallop’s mission is to accelerate the global transition to a more decentralized and equitable financial system. Therefore, there is a requirement for a banking infrastructure that bridges the crypto and fiat worlds. Scallop will allow its users to use their digital assets in the real world for the very first time. This is a major step for any foreseeable future of cryptocurrencies; without using crypto in the same way as fiat, the future is limited,” Scallop CEO Raj Bagadi said. 

Other participants also seem quite excited about the first investment round. According to Pranay Sanghavi, Co-Creator at MahaDAO, which incubated Scallop, backing Scallop is crucial at this stage since the company is addressing a major obstacle in both the crypto and banking world, and is creating a next generation banking ecosystem in a smooth and seamless manner.

The world’s first regulated DeFi Neo-banking app, Scallop, is coming closer to wrapping up its seed funding round. The project has raised $2.5 million (~£1.81 million) from notable institutions and angel investors.

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Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.