FV Bank secures $8 million in Series A funding round

By Joy Dumasia

FV Bank, the dual-licensed challenger bank and digital asset custodian has announced the successful closing of its Series A funding round worth $8 million. The fundraise, led by BnkToTheFuture, Decentralized Ventures, NFG Fund, CCIX Global, Zenrain Technology, and Satvat, raises FV Bank’s post-money valuation to $48.9 million.

Founded in 2018 by payments entrepreneurs Miles Paschini and Nitin Agarwal, FV Bank offers an online-only banking platform that meets the need for more open access to banking for FinTech, blockchain, and cryptocurrency companies.

The newly injected capital will enable FV Bank to launch its digital asset custody division, develop its debit card offering, and accelerate its international expansion. FV Bank aims to expand its product suite to include interest-bearing products and B2B lending services in 2022, aiming to achieve $750 million to $1 billion AUM within the following year.

Miles Paschini, FV Bank’s CEO, said: “We are focused on expanding our core suite of vertically integrated banking services to meet the demonstrated needs of institutional clients who are not catered to by the traditional banking sector. The demand for banking services in the FinTech and digital asset industries currently far outweighs the supply. With this new round of funding, we are in an excellent position to continue innovating and expanding our offerings to our growing client base.”

Simon Dixon, CEO BnkToTheFuture.com, said: “Banking for FinTech companies is still a major challenge for many of the companies we’ve invested in, and it requires a fit for purpose challenger bank. As soon as we saw FV Bank’s expansion plans, we wanted to not only bank with them but also support their funding so they can serve FinTech companies building the future of finance.”

Recently, IBS Intelligence reported that Puerto-Rico based FV Bank, a licensed digital bank and digital asset custodian, has announced entering into a deal with Fireblocks, an institutional platform for securely moving blockchain-based digital assets.