Financial Trio Invest $14M into CrossLend Platform
A collaboration between ABN Amro, a Dutch financial entity, venture capital firm Earlybird, and fintech startup solarisBank has brought the three companies together to invest a new German based blockchain startup called CrossLend. The trio participated in a funding round valued at $14 million.
The startup headquartered in Berlin utilizes DTL technology to create a debt exchange in Europe. The company was established four years ago and began as a marketplace for a variety of loans and bonds. It now specializes in the service of debt security, allowing clients to set up a bond portfolio whilst providing financing channels for small to medium sized enterprises across Europe.
Belief in the CrossLend Vision for Global Financial Market
According to Earlybird partner, Christian Nagel, the venture capital firm believes in CrossLend’s vision to introduce blockchain settlements through the tokenization of debt assets. He believes this will facilitate an increase in transparency as well as enhance the efficiency of debt capital markets. He also noted that finance borrowers worldwide will experience the benefit of increased market liquidity. The startup’s plan to switch from a platform for online investment in a debt exchange could solve many issues faced by small to medium sized enterprises within the global financial market.
Integrating CrossLend Operations
SolarisBank and ABN Amro have plans to implement CrossLend’s system into their own financing platforms. The Dutch bank took part in this investment via DIF, the bank’s VC arm targeted towards fintech companies. This newly established partnership will allow Dutch based businesses easy access to global capital.
ABN Amro has declared an interest in investigating additional use cases for DLT. According to CrossLend’s Chief Executive Officer, Oliver Schimek, all three companies fit the archetype of an investor that promotes the startup’s plans to expand. He mentioned that the company aims to enhance and improve the global lending market and thus facilitate more transparency and profitability. This win-win objective will serve both financial entities as well as entrepreneurial endeavors.