Safe.Cash Technologies, a California-based digital tokens group, has raised over $1m from multiple FinTech leaders as it looks to release its digital token encryption platform later this year.
Turns cash into a ‘digital asset’
Founded in 2014, Safe.Cash claims to be the first payments group that allows ‘cash to be used as a digital asset.’
Consumers can trade their U.S. dollars with Safe.Cash member banks for digital tokens which ‘preserve the privacy and universal acceptance of cash, while adding in the security and digital portability of cryptocurrency.’
‘‘Trillions of dollars are transacted in cash globally each year, representing 85 percent of all global consumer transactions’’ said Chris Kitze, founder and one of the company’s latest investors.
‘‘Instead of asking how to make a digital token like bitcoin more globally accepted, we’ve taken the universally accepted currency of cash and made it digital.’’
Soon to be available on iOS and Android, the payment platform uses end-to-end encryption while utilizing digital wallets. The cash a consumer deposits stays in the bank, while customers can do whatever they want with the cryptocurrency, including swapping them for local currency at selected partner banks.
‘Fully compliant, legal banking product’
The cash injection will be used to help Safe.Cash get off the ground, with a launch set for Q4 of this year.
Partner banks have yet to be announced, but will be immediately after the technology is released to the public. Investors include Bialla Ventures, InfoSpace founder Naveen Jain, veteran trader Vuk Bulajic, Vinh Vo and founder Chris Kitze.
Safe.Cash is certainly in safe hands in terms of acquiring further investment. Kitze is a serial entrepreneur who has created firms that have generated over $8bn worth of market capitalisation. Kitze assures his fellow investors that Safe.Cash will be a cryptocurrency hit.
‘‘While this is a boon to consumers, it is first and foremost a fully compliant, legal banking product,’’ stated Kitze.
‘‘Safe Cash is a secured digital payment system that enables banks to do things they can’t do now. Consumers and merchants will greatly benefit from person-to-person e-commerce, store of value without digital asset fluctuation risk, and eventually, cross-border payments and remittance.’’
The funding round totalled $61m, and will used to finance the company's global expansion plans.
Monzo also revealed its latest funding round last week.
A further £2.5m is expected to be raised from crowdfunding on Tuesday.
Funding Circle has perhaps started 2017 in a better way than most. The London-based lending platform that connects small businesses with investors has raised $100m (£82m) in equity investment.