Other investors include Coinbase Ventures, LuneX Ventures and individual investors including Robert Leshner of Compound Finance, according to Coindesk.
This is part of a larger story of crypto firms seeking their own banking charters to operate as crypto-native banks. Lately, stablecoin issuer and crypto services firm Paxos and crypto payments firm BitPay filed to become federally regulated banks in the U.S.
Up to now, Vauld has established a foothold in India, where a favorable ruling from the courts has unleashed a flood of crypto activity at the beginning of this year.
“Hiring is the focus of the hour in the Indian market,” Vauld co-founder and CTO Sanju Sony Kurian said in a statement.
The company, formerly known as Bank of Hodlers, will use the funds to expand from lending and borrowing to become a holistic banking platform that also includes payments and trading. Vauld also seeks to broaden its presence in Europe and the U.S.
CEO Darshan Bathija said in a statement:
“We see institutional capital come into the crypto space with the expectation of banking integrations to complement crypto credit offerings.”
The company’s aims include implementing an over-the-counter (OTC) desk, fiat and crypto order books, and debit and credit cards for multiple countries. The goal is for users to do all their banking on a blockchain.
Bathija noted that the most regulators want businesses to first prove they have the governance structure to operate in full compliance, given how new crypto firms are in general. They urge firms to get lending and money transmission licenses first and “wait for a year until we start applying for the banking license,” he stated.
According to the company, since its earlier investment of $500,000 from LuneX Ventures and a few angel investors in June, Vauld saw 950% growth. Bathija stated that is a “clear indication that yield products are valued and expected both in the U.S. and abroad.”