Notabene Aims to Be a SWIFT for Crypto Transactions with $14.5 Million Series B Funding
In an effort to bring cryptocurrency transactions into line with the rest of the financial world, Notabene has raised $14.5 million in Series B funding led by DRW Venture Capital, with participation from funds managed by Apollo, Nextblock, ParaFi Capital, and Wintermute. This investment brings Notabene’s total funding to date to over $23 million, as the company continues to expand its network of companies using its platform to securely exchange information about sender and receiver of transactions.
The Travel Rule: A Global Standard for Crypto Transactions
Notabene’s network effect is growing with 165 companies using the platform, including some of the largest virtual asset service providers (VASPs) globally such as Copper, OKX, and Ramp. The platform’s CEO, Pelle Braendgaard, expects an increase in transaction volume on Notabene (around $2 billion worth of daily transactions on average), as a deadline looms at the end of this year for firms to comply with Europe’s update of its Transfer of Funds Regulation (TFR) to include crypto transactions.
The European Commission has set out recommendations for regulators – known as the "Travel Rule" – that requires crypto companies like exchanges, wallet providers, and payment processors to securely exchange information about sender and receiver of transactions. This rule is part of a broader effort by global AML watchdog the Financial Action Task Force (FATF) to bring crypto into line with the rest of the financial world.
A Global Approach to Crypto Compliance
Notabene’s CEO, Pelle Braendgaard, believes that Donald Trump will emulate what the European Commission is doing in order to bring trading volume back to the U.S. "EU companies will have to report if they’re not getting travel information from, say, a large, unregulated offshore exchange," Braendgaard said in an interview. "This is really pushing the industry into compliance globally. So these EU rules are not just about the EU, it’s really about getting this working globally on that particular front."
Braendgaard also believes that the U.S. will take a similar approach to the EU, as it doesn’t make sense for companies to send money offshore. "If you look at what the European Commission is doing with the TFR and MiCA [the Markets in Crypto Assets regime], they want all the crypto trading to happen in the EU," Braendgaard said. "And of course, the U.S. is going to take the same approach, I believe."
Notabene’s Network Effect
As Notabene continues to grow its network, it is aiming to become a kind of SWIFT for crypto transactions. The platform currently processes around $2 billion worth of daily transactions on average, and Braendgaard expects this number to increase as more companies comply with the Travel Rule.
The platform’s growth has been driven by its ability to securely exchange information about sender and receiver of transactions. This is particularly important for VASPs, which need to be able to verify the identity of their customers and ensure that they are not involved in any illicit activities.
Conclusion
Notabene’s $14.5 million Series B funding round brings much-needed investment into the crypto compliance space. The company’s platform has already made significant strides in bringing crypto transactions into line with the rest of the financial world, and its network effect is growing rapidly. With this new funding, Notabene will be able to continue expanding its platform and supporting companies as they comply with the Travel Rule.
The European Commission’s update of its Transfer of Funds Regulation (TFR) to include crypto transactions has brought a much-needed push towards global compliance. Notabene is well-positioned to take advantage of this trend, and its network effect will only continue to grow in the coming months.
As the crypto market continues to evolve, it is clear that compliance will play an increasingly important role. Companies like Notabene are leading the charge, and their work will be crucial in bringing crypto transactions into line with the rest of the financial world.