SatoshiPay Secures $550,000 investment from Stellar Development Foundation
- 28.05.2020 09:07 am
The Stellar Development Foundation ("SDF") has made a strategic investment of $550,000 by way of convertible loan notes. This investment marks the third investment made by SDF through its Enterprise Fund and will support SatoshiPay to continue to develop its B2B solution for commercial, cross-border payments and its digital wallets. SatoshiPay was one of the first businesses to use Stellar commercially and has, to date, processed €650,000 in payments from over 200,000 accounts. SatoshiPay's open-source wallet for the Stellar network, Solar, has been downloaded more than 25,000 times in 40 countries.
SDF is a key partner of SatoshiPay providing maintenance and partner support for the Stellar decentralised ledger network. This investment will enhance the already strong relationship that exists between the two organisations and provides a strong endorsement for SatoshiPay. The convertible loan notes are expected to convert at the time of SatoshiPay's next round of funding.
The funds will be used to primarily help develop and market the SatoshiPay B2B solution. The company is currently testing this product and expects to have a product in closed alpha testing within 8 weeks. A public beta product launch is anticipated sometime in the fourth quarter of 2020. SatoshiPay advises that the initial reaction to the product has been very positive. Further the company estimates that the commercial payments segment, the largest segment of this market and the area that SatoshiPay's solution will focus on, which allows businesses to make commercial payments across borders, generates €170bn annual transactions fees.
By way of general business update on SatoshiPay, the company took immediate action to reduce costs post the COVID-19 outbreak and to ensure the safety of staff. The current cash position combined with the SDF investment provides sufficient working capital for the foreseeable future. The micropayment solution continues to be used in the publishing vertical and is growing steadily.
Meinhard Benn, CEO of SatoshiPay, said:
"With a surge in demand for instant B2B payments, and blockchain maturing and enabling a payments revolution, we believe we have a head start through our proven, scalable blockchain business model. Our growth over the years wouldn't have been possible without SDF, who has been an essential partner to us in the development of our technology which continues today with this investment."
Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, has a 27.7% stake in SatoshiPay.
Tony Fabrizi, CEO of Blue Star, said:
"The investment by SDF is a great endorsement of SatoshiPay and comes at a critical time in the Company's development and secures its funding needs for some time to come. The B2B business opportunity is significant and we are looking forward to the launch of the product in the next few months. We continue to believe that SatoshiPay has an exciting future."