Crypto payments provider Cheq wants to remove the price volatility associated with buying digital cryptocurrencies such as Ethereum.
Cheq has raised $2m (£1.5m) in its pre-seed funding round led by Connect Ventures and will use it to “establish itself” as the default option for paying with stablecoins that are tied to the US dollar.
The company aims to remove price volatility for both buyers and sellers using cryptocurrencies for online transactions.
For sellers, it provides a quick way to integrate crypto payments into their products and only requires the copying of a payment link generated by Cheq.
“While cryptocurrency has its diehard fans, many people still find them complex and lacking tangible value in a day-to-day setting,” says Chris Butcher, founder, Cheq.
“We believe a crypto wallet has the potential to be an amazing business bank account, and stablecoins provide the means to trade across borders without the costs typical of card payments,” added Butcher.
Whilst Cheq Payments Inc is headquartered in the USA it has offices in London.
Cheq was designed to improve payments internationally. However, it comes as the boss of the Financial Conduct Authority recently outlined the challenges of regulating cryptocurrency across international borders, warning that rejected business could still reach UK customers “from offshore”.
The pre-seed also saw participation from investors Semantic Ventures, firstminute Capital and a group of 30 angel investors, with ex leadership from Monzo, Revolut and Tide amongst them.
“I’ve been blown away by how quickly they’ve executed. In December 2021 Chris was pitching me an idea. By March they had built a stunning product and were processing tens of thousands of dollars every week,” said Rory Stirling, general partner, Connect Ventures.
The funding follows the news of the Bank of England requesting a budget expansion of £24m to help keep track of new financial risks, including crypto assets.
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