With an investment of $15.7 million from Octopus Ventures, EQT Ventures, and OP Financial Group, open bank platform innovator Token has successfully completed its Series A financing. “Securing the backing from such world-class investors allows us to grow and execute faster in our mission to reinvent the world’s payment systems by providing common, secure access to all banks and a modern, bank-centric payment ecosystem,” Token founder and CEO Steve Kirsch said. The total raised in the Series A reached $18.5 million.
Token is leveraging its open banking platform to give financial institutions the ability to fully participate in the digitization of finance. Calling the company’s technology, “a true game-changer in the world of banking and financial services,” EQT Ventures partner and Token board member Andreas Thorstensson said: “Through a secure API, they are creating an open banking ecosystem, which creates possibilities for new revenue streams for its customers and a better user experience for consumers.
Pictured (left to right): Stefan Weiss (Head of APIs and Open Platforms at Fidor) and Marten Nelson (VP, Marketing, Token) demonstrating Token’s technology at FinovateEurope 2017.
In the company’s live demonstration at FinovateEurope earlier this year, Token co-founder and VP of Marketing Marten Nelson emphasized the relative speed and low cost of using Token as a PSD2 compliance solution. “It eliminates security mass breaches, reduces fraud and, perhaps best of all, it paves the way for revenue,” Nelson added. Joining Nelson on stage was Stefan Weiss, Head of APIs and Open Platforms at Fidor Bank who noted, “At Fidor, we believe that PSD2 and open banking is not a threat to banks, it is an opportunity. An opportunity to stay relevant.”
With programmable money, Token has developed a technology that “can transform the way the world transacts,” according to Octopus Ventures partner Simon Andrews. Programmable money uses tokenization and cryptography to enable parties to take advantage of a “vastly greater range of parameters … when exchanging value.” And value is defined as more than just money. Writing at the Token blog, Nelson explained: “Far more than conventional money – time, contracts, expertise, goods, services, and more can all be traded.” For FIs, this offers not just greater security and verification standards for their transactions, but the ability to use more efficient self-validating transactions that would reduce costs for FIs, as well. “The potential applications for self-validating transactions conducted using programmable money are practically limitless,” he wrote.
Founded in 2015 and headquartered in San Francisco, California, Token presented The Future of Payments Now at FinDEVr Silicon Valley 2015. Earlier this month, the company announced a partnership with Finland-based OP Financial Group and, in January, Token teamed up with information technology consulting firm, VirtusaPolaris.