Better Payment Network (BPN), a payments infrastructure company focused on stablecoin, has got a $50 million seed funding round led by YZi Labs, the venture capital firm that used to be Binance Labs.
In a statement published on Thursday, BPN said the fresh capital raised is going to be used for constructing on-chain liquidity pools as well as creating market-making systems that will enable stablecoin-to-stablecoin transactions in the different parts of the world. The firm’s infrastructure is designed to merge the features of both the centralized and the decentralized finance (CeDeFi) to enable users to mint, swap, and settle directly with each other in the case of the fiat-backed stablecoins across different jurisdictions.
BNB Chain is the basis on which BPN is constructed in order to facilitate cross-border payments that are less time-consuming and cheaper. According to a blog post by YZi Labs, the company is going to cut the traditional two-day settlement cycle to just a few hours and the transaction costs from around 2% to as low as 0.3%
The multi-stablecoin model of BPN intends to solve the problem of remittances and business payments inefficiencies globally, where systems based on the dollar are most common. The founder, Rica Fu, pointed out that the company’s method “provides a more social and less costly solution to the payment systems that are dependent on USD,” thereby making it possible for the regional currencies to communicate with one another through the blockchain-supported liquidity pools without any interruptions.
While BPN is integrating automated liquidity protocols with the use of conventional payment rails, the firm is positioning itself to be capable of offering stablecoin settlements to banks, fintech companies, and e-commerce businesses that are operating in different countries. Also, the company intends to implement the feature of instantaneous foreign exchange by exploiting the on-chain data so as to increase transparency and compliance further.
In a significant public revelation, YZi Labs, formerly Binance Labs, has publicly disclosed its investment in BPN as one of the first major public deals post-rebranding. This marks a clear strategic emphasis on financing technology projects that not only upgrade the existing financial system but also intelligently integrate blockchain technology.
“By using BPN, payments become not only seamless, scalable, and efficient but also have the potential to dominate both traditional Web2 players and fragmented Web3 solutions,” stated Dana H., Investment Partner at YZi Labs. The identity of other investors in the round remains a mystery. The Block has contacted YZi Labs seeking more information.
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