Blockchain
JPMorgan, Standard Charter-Backed Blockchain Payment Network Partior Raises $60M
Partior, a cross-border payment network backed by major banks JPMorgan Chase & Co., Standard Chartered Plc. and DBS Bank Ltd., announced today raised $60 million in a Series B funding round.
The round was led by Peak XV Partners with support from Valor Capital Group and Jump Trading Group as new investors. JP Morgan, Standard Charter and Temasek Holdings Ltd. joined the round as existing shareholders of the company.
Partior was born as a settlement network to disrupt the slow settlement process between banks and financial institutions across borders, which can take days to complete using legacy infrastructure. The company’s blockchain distributed ledger infrastructure allows commercial bank deposits and other assets to be transacted on the network for near-instant settlement without having to rely on older networks. It also uses blockchain as a reliable validation of transaction history.
Incorporated in 2021 by Singaporean investment firm Temasek along with major banks JPMorgan and DBS as founding shareholders, the company is also backed by the Monetary Authority of Singapore. Standard Chartered also came on board as a founding shareholder in 2022.
DBS, JP Morgan and Standard Chartered are already using Partior’s network to settle payments for their clients, the company said. Other clients include German multinational technology conglomerate Siemens AG and digital banking platform iFAST Financial Pte Ltd., which have used the platform through Standard Chartered to increase the speed of their payment flows.
“Partior is breaking down silos and rewriting the rules for cross-border clearing and settlement. We see a very bright future for frictionless cross-border transactions powered by blockchain,” said CEO Humphrey Valenbreder. “Having some of the world’s best banks and investors supporting our vision only further validates it.”
The company said the new funding will be used to expand services for the platform, including new features such as intraday foreign exchange swaps, software-based corporate liquidity management and just-in-time multi-bank payments. Partior added that the investment will support the growth of the company’s international network and the integration of several additional currencies in addition to the US dollar, euro and Singapore dollar.
The use of blockchain networks for cross-border payments has long been explored, including by JPMorgan, which announced a Ethereum blockchain-based platform in 2017. The same year, the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, which is responsible for international financial settlements, expanded its blockchain platform Global Payments Innovation Initiative to cover more banks.
Most recently, London-based financial technology firm Fnality International Ltd. raised $95 million by the end of 2023 to expand its platform that allows banks to use blockchain technology to settle payments in near real time and also reduce the amount of paperwork involved.
“Having spent a significant portion of my career solving some of the biggest challenges in global payments, I’ve seen firsthand how critical it is to modernize the cross-border payments and settlement infrastructure,” said Dan Schulman, managing partner of Valor Capital Group. “We see tremendous potential in Partior to do just that.”
Image: Plumage
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