Parfin‘s financing round was led by Framework Ventures. Alexia Ventures and Valor Capital Group also participated in the financing round.
About Parfin
Web3 infrastructure provider Parfin was founded in 2019. It has evolved from a company that initially planned to develop a stablecoin to an infrastructure provider offering digital asset custody, trading, tokenization, and governance tools to some of Latin America’s largest financial institutions. It has raised $15 million towards this goal. The seed round, which closed at the end of November, was led by Framework Ventures.
CEO of Parfin Marcos Viriato said: “As a matter of fact, I initially invested in Parfin as an angel. There was this guy with a PowerPoint, trying to raise funds, and I said, ‘Oh, I like the idea.’, But the idea back there was to do a regulated stablecoin.”
A LatAm Plan
Parfin Viriato has set its strategy to focus on the Latin American region because no other competitor has yet focused on this region. He said that he planned to dominate this region as a priority and create a springboard for the rest and that this strategy has played out well because he has acquired major financial institutions, and major players, including the Brazilian Stock Exchange, one of the largest stock exchanges in the world.
A Permission Public Chain
Parfin is currently developing Parchain, a permission Ethereum Virtual Machine-compatible blockchain that will enable regulated entities to participate in decentralized finance (DeFi) and asset tokenization.
Brandon Potts, principal at Framework Ventures, said the startup could deploy inside financial firms’ firewalls or security infrastructures.
Potts: “That’s huge because these institutions, they’re not going to want to deal with a mobile phone or have to call up multiple people on a Saturday morning to sign a transaction to move funds. They want to bring it in and automate it and have it embedded within their entire security spend, their entire risk budget.”
Viriato, Parfin’s CEO, said: “Our goal is to build and allow mid-sized small banks to take and leverage this infrastructure in a unique way. And the beauty of what we built was we created some very sophisticated mechanisms for bridges where you can smoothly interoperate between different blockchains.”
Working in a Stable Way
Viriato said the new funds did give the startup a springboard of between 25 and 30 months. The startup has been running lean after fundraising in early 2020 and then losing most of its committed investments when Covid-19 emerged. It was not until September 2020 that Parfin managed to raise a pre-seed round, he added.
While the most recent funding was only an equity round, the startup has provided token warrants to investors in the past. Virato also added that a token launch for Parchain could be possible in late Q2 or Q3 of this year.
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