Telcoin has raised $25 million in an ongoing pre-Series A funding round to support its plans to become a regulated blockchain bank in the United States and launch a bank-issued stablecoin.
The blockchain-based financial services company said on Tuesday (October 14) press release that the funding will help it meet the capital requirements for its conditionally approved charter of the Nebraska Digital Asset Depository Institution.
The company plans to open Telcoin Digital Asset Bank later this year, according to the release.
Telcoin also plans to launch a bank-issued stablecoin called eUSD “Digital Cash,” which it says will be designed for everyday use in payments and banking.
The company is currently partnering with mobile network operators and mobile money platforms around the world to help them offer decentralized financial products to their subscribers, according to the company’s terms. website.
“With our first bank and stablecoin, we provide real access to bridge the gap between traditional banking and decentralized finance,” CEO and Founder of Telcoin. Paul Neuner said in the release. “Unlike offshore or non-bank alternatives available in the market today, eUSD will offer people a regulated and trusted way to use digital dollars at scale.”
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Telcoin also expands the list of jurisdictions around the world in which it is permitted, as cross-border remittances are the company’s initial use case for its stablecoin, according to the release.
The company said in February press release that its operating entity is licensed as a major payment institution in Singapore and its subsidiaries are registered as a European virtual asset service provider in Lithuania and as a money services business in the United States, Canada and Australia.
Tom Kaimanfounding director of Otter & Co. Capital Holdingsone of the investors in the round, said in the release that Telcoin “is redefining what is possible in banking.”
“It’s not just about digital money, it’s about reimagining how people everywhere connect to their finances,” Kaiman said. “Telcoin is leading a movement toward a faster, more secure, and truly global financial system, and we are proud to be part of this change.”
Telcoin announced in February press release that its application to become Nebraska’s first digital asset depository institution has been conditionally approved by the state Banking and Finance Department.
Neuner said at the time that the approval “marks a major milestone for Telcoin and the entire US crypto industry.”
“I always thought the key to making crypto usable in payments and traditional finance was a digital asset bank with native connections to the existing financial system,” Neuner said.
