Baanx Raises $20 Million to Bring Crypto Payments Offering to US

Cryptocurrency payments company Baanx has reportedly raised $20 million.

The firm will use the Series A funding to help it introduce its services in the U.S. and Latin America, Chief Commercial Officer Simon Jones told Coindesk Tuesday (March 5).

“Over the past 12 months, we have been building out a series of non-custodial, on-chain products, creating a whole new type of crypto payment,” Jones said. “Allowing the user full control of their funds whilst enabling real-world spend, we hope to power the next generation of crypto payments.”

The report noted that the round brings the London-based Baanx’s total funding to more than $30 million. Investors included Ledger, Tezos Foundation, Chiron and British Business Bank.

The company’s funding comes as the crypto market booms in popularity as the price of bitcoin reaches record levels after several months of downturn.

Meanwhile, PYMNTS recently examined how the vaulting of digital assets is one area in which credit unions (CUs) are engaged in digital innovations, giving members safe options for managing cryptocurrencies, blockchain technology, and other digital assets.

“This not only expands the range of financial products and services available to members but also provides them with convenient and reliable solutions for managing their digital assets within the trusted framework of their CU,” PYMNTS wrote last month.

The rising demand for digital assets lines up with research conducted by PYMNTS and PSCU, the October “Credit Union Tracker®,” which showed that 30% of surveyed consumers hold cryptocurrency, while the number of CU members holding crypto has climbed by 2%.

In a recent interview with PYMNTS, Lou Grilli, PSCU’s senior innovation strategist, touched on the increasing consumer interest in cryptocurrencies, contrasting it with the declining number of FIs prepared to provide cryptocurrency services to their members or customers.

“The wild fluctuations in value that used to make [crypto] exciting have flattened out. But that has made it more attractive and more like holding something steady, like gold, as an alternative investment,” Grilli said, citing growing interest in “countries where inflation is rampant” and currencies are being devalued.

“And because CU members expect their institutions to provide services that meet their need for trust, convenience and frictionless experiences, integrating cryptocurrencies and digital assets more broadly into their offerings is emerging as a key strategy for CUs aiming to maintain a competitive edge and provide innovative services to their members,” that report concluded.