Posted In:

Articles


Payments Platform Reserve Trust Raises $30.5m Series A from QED Investors and FinTech Collective

Published:

Aug 04, 2021


Source:

Posted In:

Articles

Published:

Aug 04, 2021


Source:


Share:

Very few companies have the potential to build foundational payments infrastructure, with the opportunity to rewire trillions of dollars of payments flow every year.

Leadership from proven serial entrepreneurs, with a business seeing rapid revenue growth, gets us even more excited.

Today we’re pleased to announce that FTC has added Reserve Trust to the portfolio, as a core position in our second fund.

FTC Summary


The B2B payments industry is massive, with $25 trillion of payments volume annually in the U.S. and $140 trillion globally. These payments largely operate over the bank payment rails, which in the U.S. is managed by the Federal Reserve and includes ACH, wire, and eventually FedNow’s real-time payments scheme.

These payments can be stunningly expensive, slow, manual, and “data poor.” Improving the B2B payments experience with technology has proven very difficult, as a partner bank must facilitate every transaction on the back-end. The banks introduce significant friction and cost due to their capital requirements, regulatory overhead, and decades of technical debt.

Reserve Trust has the opportunity to disintermediate bank gatekeepers and unlock the next wave of innovation in B2B payments. Armed with a master account at the Federal Reserve (and direct access to the rails), Reserve Trust is building the foundation for bank payments that are faster, cheaper, and smarter. The opportunity is global, with international financial institutions already turning to Reserve Trust to facilitate stateside payments and custody.

Over time, Reserve Trust can become a modern, high-tech payments processor across a broad set of customers and use cases. Current and potential customers include software companies looking to embed payments, money services businesses, payments processors seeking a new bank partner, and international financial institutions in search of U.S. correspondent banking.

Most importantly, Reserve Trust is led by a unique team with deep experience in building cloud infrastructure at scale. Dave Wright (CEO) and Dave Cahill (COO) previously built cloud storage pioneer SolidFire, which sold to NetApp for $870m. In addition to lead investor QED, we are joined in the financing by Ardent’s Phil Bronner, Solidfire’s original seed backer. Additional investors in the round include Flywire CEO, Mike Massaro, and Quovo Founder and CEO, Lowell Putnam.

Reserve Trust is on a mission to power the future of B2B payments. We are excited to be along for the journey. Let’s go!

Reserve Trust's unique combination of a trust charter with a Federal Reserve master account allows us to create foundational payment and custody services delivered via APIs to enable innovation across the entire fintech ecosystem. The funding announced today, including leading investors across the fintech ecosystem, will go a long way to helping us continue to execute on this vision.

Reserve Trust CEO Dave Wright

The views expressed here are those of the individual FinTech Collective LLC (together with its affiliates “FTC”) personnel quoted and are not the views of FTC or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by FTC. While taken from sources believed to be reliable, FTC has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; FTC has not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. This content does not constitute an offering or form part of any offering or any solicitation of any offer to subscribe to or purchase any investment by FTC, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with any contract therefore. Any such offer will be made only by means of definitive investment offering documents. The information included herein is subject to change without notice to any recipient. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by FTC, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by FTC (excluding investments for which the issuer has not provided permission for FTC to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://www.fintech.io/portfol... and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://www.fintech.io/disclos... for additional important information.


Share: