Galaxy Digital and Block.One Lead $30 Million Funding Round for US Disruptor Bank
The cryptocurrency VC fund has become the latest to pile into the neo-banking sector.
Cryptocurrency-focused merchant bank Galaxy Digital and Block.One have led a $30 million Series A investment round in U.S. neo-banking platform Good Money. The news was confirmed by a press release Dec. 10.
Aiming to balance user ownership with part donation of profits and equity, Good Money provides banking services and a handful of associated financial instruments to U.S. account holders.
The investment came mostly via Galaxy and Block.One’s joint Galaxy EOS VC fund, one of several funds under the Block.One umbrella.
“Modern banking is a primary driver of so many issues we face as a society - from economic inequality, institutional racism, environmental destruction to political corruption,” Good Money founder Gunnar Lovelace commented in the press release.
The neo-banking market is quickly gaining ground over traditional providers both within and outside the U.S.
As Cointelegraph reported, European entities such as Revolut have sought to combine blockchain and cryptocurrency offerings with banking services, targeting banks’ high transfer fees to woo users out of their comfort zone.
Good Money follows a similar ethos, abandoning ATM fees and offering each user equity in the company. Ahead of its launch, it remains unknown whether the latest funding input creates room for cryptocurrency support.
Galaxy itself meanwhile has faced a tough year. It has emerged that the company lost $136 million through Q3 as the drop in cryptocurrency prices took its toll. CEO Michael Novogratz remains buoyant on Bitcoin (BTC) making a comeback, telling mainstream media an institutional investor influx should produce results by Q2, 2019.