Fintech firms increasingly employing crypto encounter a significant hurdle: blockchains' public nature. This introduces a risk where customers' private financial details, such as income or rent expenses, might unintentionally become accessible to everyone. A startup named Seismic is working to address this issue.
TL;DR
- Seismic, a crypto startup, secured $10 million in funding to protect customer data for fintech companies.
- Fintechs adopting crypto face risks from blockchains' public nature, exposing private financial details.
- Seismic's funding round was led by a16z crypto, with participation from Polychain and others.
- The company aims to provide comprehensive solutions, helping fintechs win and expanding services.
Seismic revealed on Wednesday it secured $10 million through a funding round spearheaded by a16z crypto, joined by Polychain, Amber Group, TrueBridge, dao5, and LayerZero. This brings the startup's total funding to $17 million. Lyron Co Ting Keh, Seismic's founder and CEO, declined to share his company's valuation during an interview with Coins2Day..
Co Ting Keh shared that his startup, Seismic, received its name for a pair of reasons. Primarily, the company intends to be actively involved and deeply understand client requirements, a crucial aspect in the highly technical crypto domain where user focus can easily waver, according to Co Ting Keh. Secondly, Seismic signifies immense scale, reflecting the company's ultimate aspiration.
“We know we’re extremely grounded,” said Co Ting Keh. “And we hope to be extremely valuable.”
Seismic's fundraising occurs amidst fintech companies and major financial institutions are embracing crypto. This adoption brings with it an increasing demand for privacy. In a recent “State of Crypto” report from a16z crypto, it was discovered that individuals utilizing blockchain technology are more concerned than ever about the security of their data. The report indicates that searches for crypto privacy have seen a significant rise over the last year, with Google related queries.
Seismic, dedicated to assisting fintechs in safeguarding customer information, collaborates with Brookwell, a fintech firm offering customers stablecoin accounts that bypass traditional banking. Transactions initiated by Brookwell customers are processed via Seismic's private blockchain infrastructure, preventing data breaches or public exposure.
Co Ting Keh stated his firm partners with Cred, a private credit provider. He also noted their collaboration with an undisclosed entity for cost-effective international money transfers, surpassing conventional methods.
He said that his company’s competition is Tempo, a Stripe-backed blockchain startup which recently raised $500 million and is valued at $5 billion. “Tempo is a heck of a powerhouse”, he said, adding that both companies can succeed at the same time, “if the pie is big enough all of us eat.”
Seismic differentiates itself from rivals through its comprehensive approach. For instance, when a business utilizes Seismic for a particular task, the company's involvement doesn't end there. They inquire about additional needs and explore ways to exceed the client's initial product requirements, according to “Our value prop is not that we do X, Y, and Z. Our value prop is that we help you win,” Co Ting Keh.
The company intends to broaden its services with its recent funding, including fiat-to-crypto on-and-off ramps and card initiatives. Currently, the business generates no income but anticipates doing so by the first quarter of next year, implementing a one-cent fee per transaction.