ZTLment becomes Europe’s first payments institution built on blockchain
Ztlment was granted a European payment institution licence by the Danish Financial Supervisory Authority. It is the first time that an EU supervisory authority grants an IP licence to a company that uses blockchain rails to move funds.
Ztlement developed smart contract software to move euros P2P on blockchain, in full PSD2 compliance. The solution allows digital marketplaces and cloud-based B2B platforms to instantly and automatically move money and value between buyers, sellers and financiers.
The company has raised €1.3 million in pre-seed funding from venture funds specializing in fintech.
“Our goal is to build a completely frictionless system where business partners don’t have to bother with complex banking infrastructure nor deal with volatile cryptocurrency, unregulated stablecoins or complicated consensus mechanisms,” says co-founder and CEO, Mads Stolberg-Larsen.
“The benefits of the technology are clear. Digital marketplaces and cloud-based B2B platforms can instantly and automatically move money and value between buyers, sellers and financiers. However, so far user experiences have not been built for business workflows and compliance with European payments regulation has been missing,” says Stolberg-Larsen.
Ztlment’s smart contract software has now been approved under Payment Service Directive 2 (PSD2), a European open banking framework, in a regulatory first.
“We are opening a new playing field for moving euros and other fiat currencies between business partners with simple IF-THIS-THEN-MONEY logic. It is like direct debit, but with rocket engines on,” says co-founder and COO, Harry Kearney.
How Ztlment works
Ztlment is targeting digital marketplaces and other cloud-based business platforms, which connect buyers and sellers.
With a snippet of code, they can link money and value to existing workflows - or build entirely new ones with smart contract software embedded from day one.
The risk between trade participants and financial partners can thereby be reduced, as funds only move when relevant milestones are hit. This opens up for data driven trade finance models, which in turn can bring much needed working capital to sellers around the world.
The team has been backed by Upfin, a Nordic fintech fund, and Giant Ventures.