London-based startup E-Money Markets raised 700,000 pounds (about $882,000) in pre-seed funding to build a white-labeled foreign exchange solution.
“This milestone is a crucial step toward our launch, and we’re proud to be building the future of FX broking together,” the company said in a Friday (Feb. 14) post on LinkedIn.
The solution E-Money Markets is building will offer competitive exchange rates, payment rails, collections and customer service, according to its website.
The company aims to offer its partner FX firms technology and tools that will help them provide their clients — generally small- to medium-sized businesses (SMBs) and high net worth individuals — better transparency, pricing and security on international payments, per the site.
The pre-seed funding round was led by CH-1 Investment Partners, according to the post.
“We were immediately impressed by E-Money Markets’ vision and the team’s deep industry expertise,” Richard Spacey, partner at CH-1 Investment Partners, told Tech Funding News. “Their white-label model taps into an underserved market with immense potential.”
In another, separate development in the space, Wells Fargo and Derivative Path said in January that they partnered to help regional and community banks provide FX payment services.
The solution enabled by the collaboration works within bank customers’ digital experience, provides real-time FX rates across more than 120 currency pairs and streamlines the collection of settlement details at the point of payment creation.
During the same month, Waza introduced a multicurrency account platform called Lync that it said is designed to power global trade for businesses in emerging markets.
Among other features, the Lync platform offers competitive FX rates; seamless payments via ACH, wire, Swift and local payment rails; and treasury and FX liquidity solutions.
In November, J.P. Morgan announced that it was integrating its blockchain platform, Kinexys Digital Payments, with J.P. Morgan FX Services to enable on-chain FX settlement.
The bank said the integration would initially support U.S. dollars and euros before expanding to other currencies, would allow clients to execute near real-time FX transactions and settlements via the J.P. Morgan global FX platform, and would reduce FX settlement risk and accelerate trade settlements for businesses managing international payments.
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