Singapore fintech startup Rate has raised US$15 million (25,000 ether) in a token sale through its blockchain project Rate3.
VCs such as Matrix Partners China and Bo Shen, founder of Fenbushi Capital, as well as crypto investors Node Capital, Kenetic, FBG Capital, Signum Capital participated in the round.
Rate will use the newly-raised funding to accelerate product development and fuel its expansion into new markets.
Rate3 is a blockchain network that aims to help companies tokenise their assets. An additional identity component helps companies to maintain one single unified identity across different blockchains and services, instead of completing multiple KYC/AML checks.
Its tokenized assets are available as either an Ethereum-based token, or Stellar asset. The former allows for more complicated smart contracts, such as maintaining an identity, but the latter allows Rate3 to take advantage of the token’s low transaction costs, fast transaction speeds and decentralised distributed exchange.
“We believe that blockchains have not reached mainstream adoption because the current infrastructure is not ready yet. First, there are no common legal frameworks to tie ownership and control of real-world assets to digital tokens,” said Jake Goh, CEO & Co-Founder of Rate.
“Second, there are still many differing smart contract standards and lastly, the current identity ecosystem on blockchains is still fragmented. Without common standards, government regulators will also find it hard to regulate and audit blockchain companies.”
Rate previously S$3 million (US$2.3 million) from Indonesia’s Alpha JWC Ventures and Insignia Venture Partners in March this year.
At that time, the company was focused on developing its RateX, a free browser extension that automatically provides shoppers with the lowest exchange rate at no transaction fee for overseas purchases through e-commerce platforms, and was in the midst of developing its mobile app variant.
Image Credit: Rate