Finteum, the London-based blockchain startup that aims to help bank treasury departments reduce their intraday liquidity requirements, has raised a £1.3 million ($1.5m) seed round from SuperSeed.
Several high profile banks have been involved in Finteum DLT trials, including Barclays, BNY Mellon, Citi, Deutsche Bank and Natwest.
To date, stringent Basel III requirements for banks to hold liquid assets have existed during a benign interest rate environment. As rates rise, banks are keen to optimize the use of their liquidity.
Using intraday FX swaps, institutions can quickly shift funds into the currencies they need for just hours at a time. While the intraday FX swaps solution is Finteum’s first, it has also started working on intraday repos.
Finteum provides a marketplace where the negotiations are logged on its enterprise blockchain in a permissioned manner, preventing trade failures due to mismatches. We explored the solution in more detail here.
So far, three banks have signed up for Finteum’s 2023 launch.
“Finteum provides an elegant way for top tier banks to earn yields on their reserve assets using Distributed Ledger Technology (DLT),” said Mads Jensen, Managing Partner at SuperSeed. “We expect the company to provide transformational technology to leading banks for many years to come”.
When we spoke to Finteum CEO Brian Nolan a few months back, he said the company was exploring venture funding and it was too early to look for strategic investment from banks.