Zug, Switzerland-based Arf, a cross-border settlement banking platform that uses web3 technologies, announced on Wednesday that it has raised $13M (approximately €13M) in equity and debt financing in a Seed round. Investors across Web3 and institutional finance space, including Coinbase, Solana, FTX, and Kabbage, participated in the round.
Other investors, including Circle Ventures, Stellar Development Foundation (SDF), United Overseas Bank (UOB) Venture Management, Signum Capital, Hard Yaka, NGC Ventures, Blockchain Founders Fund, and 500 Emerging Europe, also participated.
The Swiss firm plans to use the funds to further develop its blockchain-based technology to provide global treasury management and working capital credit lines for financial institutions and licensed money service businesses operating in the cross-border payments industry.
The announcement comes a month after receiving the Financial Services Standard Association (VQF) approval. Arf’s VQF membership assures compliance with the Swiss Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) acts.
VQF is one of the world’s oldest and most selective cross-industry Self-Regulatory Organisations (SRO) and is officially authorised by the Federal Financial Market Supervisory Authority (FINMA).
It is recognised as Switzerland’s financial services watchdog, supervising its members with regard to AML and CTF regulations.
“We are delighted to see prominent Web3 and institutional finance investors validate our vision and join forces with us,” says CEO Ali Erhat Nalbant.
“Arf’s technology sits right at the centre of cross-border payments evolution. This funding round will help us scale Arf to free up trillion dollars worth of locked working capital in the industry,” he added. “We’ll keep leveraging digital assets and Web3 technologies to fuel the transformation in global finance in a fully compliant way,” he adds.
Arf: What you need to know
Founded by Kazim Rifat Özyilmaz, Ali Erhat Nalbant, Ahmet Özcan, and Berhan Kongel, Arf provides real-time fiat-to-fiat cross-border settlements, stablecoin-based credit lines, and global treasury management for financial institutions and licensed money service businesses (MSBs).
In April, Arf launched Arf Credit Line to provide MSBs instant access to transactional working capital credit lines, allowing any corridor to be post-funded in real-time.
By leveraging stablecoins and allowing instant settlements across multiple channels, including bank accounts, e-wallets, and cash pickup points, the company enables MSBs to build API-based cross-border financial operations and treasury management.