Parfin provides the infrastructure for web3 and attracted Framework and B3
Parfin an infrastructure startup for the web3 — has just closed a round led by Framework Ventures, one of the main managers in Silicon Valley when it comes to the crypto universe. Framework has $1.4 billion in assets allocated to crypto/blockchain startups. The funding, of US$ 15 million, also had the participation of L4 Venture Builder, the recently created B3 corporate venture capital fund.
Parfin is L4’s first crypto investment, which has BRL 600 million to seek startups in the financial market. Valor Capital and Alexia Ventures, which were already Parfin investors, followed the round. Marcos Viriato, who was a partner at BTG and head of technology for years, and Alex Buelau, a Brazilian programmer who made his career in London at multinationals such as Siemens – teamed up to found Parfin in 2019. The two met in July of that year, when Marcos was spending some time in London.
“We have seen that the financial market will eventually embrace crypto and use blockchain to tokenize assets,” Marcos told Brazil Journal. “And Brazil was a market where nobody was doing that and it has huge potential. The population is very large and they like technology, and the regulations are also favorable.”
Parveen already has three products to market. The first is what he calls “encryption as a service”, which uses B3 itself as a client. Basically, its API is linked with 20 different exchanges, allowing any bank or exchange to offer cryptocurrency trading within their platforms.
Banks have the ability to choose which exchanges they wish to trade with. As a result, we will always get the best price among all connected brokers and offer it to them,” Marcus said. The second product is a custody solution that allows brokers, banks and institutional investors to hold purchased crypto on offshore depository exchanges – avoiding the risks of a situation like FTX.
He told Alex, CTO of the startup: “If you deposit cryptocurrency on an exchange, they send it to a wallet central where everything blends together.” “With the guard that you separate, it’s an extra layer of security. “Third product that has just been launched: the Un licensed private blockchain network called Parchain. Marcus. Today, when a company like Vórtx, for example, tokenizes bonds, they usually use a public blockchain.
The problem with this is that “anyone on the public network can see the transactions that take place, including including its competitor. Also, the cost of a private network is much lower because it does not charge a fee for each transaction.” According to him, Partin’s permissioned blockchain also provides interoperability with other private and public networks. i.e. they will be able to send Tokens to other blockchain networks.
Parfin has approximately 500 million reais of assets under custody, of which 200 million reais are from crypto-as-a-service and the rest of the tokenization part.The startup is mostly paid for through fees.comes at a time of rough seas in the crypto world – where the FTX affair has sparked a new wave of skepticism in the industry. “Last year was a very tough year and the FTX story could have ruined the round,” Marcus said. “But our investors were very confident in the technology and, in fact, our solutions are helping. Mitigating instances like FTX, providing greater diversification and better risk control.