Parfin recently joined the ranks of LatAm fintech raising considerable funding earlier this year.
The company specializes in digital asset trading infrastructure, announced that it has raised $15 million in its new seed investment round.
This round was led by Framework Ventures, one of Silicon Valley’s leading managers in the crypto ecosystem, which has $1.4 billion in assets allocated to startups, mainly in the blockchain and other digital assets segment.
Besides this fund, L4 Venture Builder, a corporate venture capital fund created by São Paulo Stocks Exchange, B3, in May 2022, also participated in the investment.
This fund focuses fundamentally on impact startups and will have an initial performance of 5 years. The investment in Parfin was the first crypto investment made by L4.
In addition to these funds, Valor Capital Group and Alexia Ventures also invested in Parfin in this round. Both companies had previously led an $8 million fintech round in 2021.
The expansion of blockchain-based initiatives
According to the startup, the resources from this new funding will be used to continue evolving existing products and launching new solutions, such as Parchain, a new initiative dedicated to assets on the blockchain.
“Raising this money in a complex and challenging market gives us even more confidence in Parfin’s strategy, technology, and products,” says Marcos Viriato, CEO and co-founder of Parfin, in a statement.
Parfin currently has about $95 million of assets under custody, $38 million of which is from the crypto as a service, while the rest is in the tokenization part of the company.
Generating impact in the DeFi and crypto industries
Founded in 2019 by a former partner of the bank BTG Pactual, Marcos Viriato, as well as Cristian Bohn and Alex Buelau, Parfin also works with tokenization and digital asset management, connecting institutional investors to the various players in the cryptocurrency market, such as exchanges, banks, and custodians.
“Despite the strong growth of DeFi and the crypto industry being more accessible, most institutions have yet to fully adopt and integrate Web3 due to several concerns about regulatory requirements and technical security risks,” comments Brandon Potts of Framework Ventures. For him, Parfin can be a game-changer in this context.
Pedro Meduna, the co-founder of L4 Venture Builder, believes that Parfin is doing an exceptional job in the sector. “With this move and a new capital increase, we expect to strengthen our relationship further and for Parfin to continue to execute its roadmap to deliver digital infrastructure on an institutional level, combining market experience and technological innovation.”
Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.
He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.