Scallop, the world’s first regulated DeFi neo-banking app, is set to close its first investment round of $2.5 million with participation from a bevy of institutional and angel investors.
The round, led by Blackedge Capital, includes both new key investors and early backers of the business. Furthermore, Blackedge Capital adds Scallop to its portfolio of prominent blockchain startups, such as Public Mint and Coti. Another feather in the cap of the up-and-coming fintech startup bringing its services to the UK and Europe shortly. Scallop is the first project to be incubated by MahaDao and to utilize the ARTH token in hope to create the first inflation-proof bank account.
Scallop’s seed financing was bankrolled by a list of high-profile investors filling up the funding round, namely X21 Capital, Bitcoin.com, Magnus Capital, Amesten Capital, Marketcross, KuCoin Labs, ZBS Capital, Solidity ventures, J8 ventures, and MahaDAO. All contributions will help the team advance its mission of bridging the gap between regulation in traditional finance and accessibility through decentralized finance. Cryptocurrencies and fiat money never have to be mutually exclusive.
The latest round of funding will enable Scallop to continue enhancing its banking ecosystem, which includes an on/off ramp for a seamless two-way exchange between cryptocurrencies and fiat money.
Scallop was founded with the vision to offer DeFi powered banking products that make day-to-day lives more manageable and bring cryptocurrency further into the mainstream. Clients can use its accounts for regular activities such as paying for goods, setting up direct debits, and sending or receiving international money transfers. This functionality will be accessible to users across both CeFi and DeFi, creating a powerful solution to improve global financial equality.
Authorised by the Estonian regulator and Scallop group is lawfully entitled to provide virtual currency exchange and wallet services. 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. The regulatory aspect is crucial for Scallop, as it brings more legitimacy to the cryptocurrency side of their business.
Raj Bagadi, CEO and Founder at Scallop, said:
“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."
Pranay Sanghavi, Co-Creator at MahaDAO added:
"To be able to incubate and invest in an ultra-high-scale project like Scallop at this early stage is amazing for us. We’re thrilled to back Scallop as they are innovatively addressing a major obstacle in both the crypto and banking world, and are creating a next generation banking ecosystem in a smooth and seamless manner. The team at Scallop are highly talented, and I can’t wait for them to share with the world their amazing vision.”