Pantera Capital, Square join blockchain payments startup Transparent's $14M series A round

Investment firm Pantera Capital has announced on Twitter that it has led Transparent System’s Series A funding for developing a “real-time cryptographic settlement network” with the participation of Jack Dorsey’s Square.

Transparent Financial Systems is a Seattle-based startup that spun out of Vulcan in 2018 at the direction of Paul Gardner Allen, co-founder of Microsoft, and Shawn Johnson, former chairman of the investment committee of State Street Global Advisors, CoinDesk reported. The company is moving out of its stealth mode and is going to launch its first product which supports real-time, business-to-business payments using a blockchain-based system, according to GeekWire.

“Blockchain technology is rooted in decades of advances in distributed systems and cryptography, and it's at the center of banking and financial innovation today,” said Joey Krug, co-chief investment officer at Pantera.

The startup has raised over $14 million in the latest round which also saw participation from Future\Perfect Ventures, IDEO Colab Ventures, Digital Currency Group, and CMT Digital. It had raised $8 million in seed financing from Vulcan Capital in 2018. As part of the investment deal, Pantera and Future\Perfect are joining Transparent’s board of directors.

Transparent said that it is already concluding its beta program and will use the latest funding to speed up product development and engineering. It is also considering to expand its services outside the United States.

In its press release, the startup said that it is on track to open up its network for evaluation, testing, and initial commercial use in 2020.

“The financial industry is ready for new technology to improve the way people pay for goods and services,” said Chris Orndorff, chief investment officer at Vulcan Capital. “The team at Transparent has made impressive strides over the course of its first year, and we are excited to continue our work with them as their strategic partner and new investor that honors Paul Allen’s vision for the next wave of fintech."

Meanwhile, ethereum-focused tech and VC firm ConsenSys announced on Tuesday that it cut down its workforce by 14%. According to the report, the latest lay off would allow the team to “be better align with the needs of a focused software development company.”

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