Emtech, a New York-based African provider of central banking infrastructure, recently introduced its Central Bank Digital Currency (CBDC) Innovation kit aimed at fintechs and financial service providers interested in exploring solutions and business models based on digital currencies pioneered by central banks. Last month, the company announced a significant seed investment of $4 million, led by Matrix Partners India. Other investors in the round include BTN, VestedWorld, Equity Alliance, LoftyInc Capital, Level Up Ventures, and Collide Capital. They join Emtech’s previous investors, such as Noemis Ventures, Octerra Capital, and 500 Global, on its cap table. With this investment, Emtech’s total funding reaches $10 million, which includes a $4 million pre-seed investment from last year and a recent $2 million extension.
The primary purpose of this funding is to further develop Emtech’s CBDC stack and regtech solution. The company aims to continue its work with central banks in different countries and assist them in digitizing cash infrastructure and deploying CBDCs. Emtech has already collaborated with the Central Banks of Ghana, Nigeria, and the Bahamas, developing regtech and CBDC stack solutions. However, the company initially hoped to work with at least 10 central banks by now but currently collaborates with six.
Why The Investors Invested
The investors’ decision to invest $4 million in Emtech’s seed round can be attributed to several strong and fact-based reasons. Firstly, Emtech’s vision of creating a platform that fosters collaboration between central banks and fintechs, along with its aim of digitizing cash infrastructure through regulated CBDCs, aligns well with the ongoing global trend of exploring digital currencies. With central banks increasingly exploring and producing digital versions of their currencies, Emtech’s CBDC Innovation kit offers a potential solution for central banks to modernize their financial systems and avoid leaving digital payments solely in the hands of the private sector.
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Moreover, Emtech’s track record of successfully developing regtech and CBDC stack solutions for multiple central banks, including those of Ghana, Nigeria, and the Bahamas, demonstrates its expertise and credibility in this domain. The company’s partnership with the West Africa Monetary Institute further solidifies its position as a significant player in the digital currency space.
Additionally, the demand for fintech-friendly CBDC solutions is evident from the interest shown by around 200 fintech companies on Emtech’s waitlist, eager to work on its platform. The potential of Emtech’s simulated token “Beyond Cash (BYDC)” and its innovative approach of leveraging the Hedera Hashgraph and ERC-20 standard for tokenization through the CBDC Innovation Kit resonates with investors looking to support disruptive and inclusive financial technologies.
A Look At Emtech
Emtech, founded four years ago, is a New York-based African provider of central banking infrastructure. The company’s primary focus is on assisting central banks in digitizing cash infrastructure and deploying CBDCs. Its Central Bank Digital Currency (CBDC) Innovation kit, introduced last month, aims to facilitate fintechs and financial service providers in experimenting with digital currencies pioneered by central banks.
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The company was founded by Carmelle Cadet, who is also the current CEO of Emtech. The startup’s mission is to provide innovative solutions that enable central banks to safely deploy CBDCs as a digital cash infrastructure. By doing so, Emtech aims to bridge the gap between fintech innovation and central banking oversight, unlocking untapped opportunities for fintechs in the CBDC ecosystem.
Emtech’s primary markets are in Africa, where it has collaborated with central banks in Ghana, Nigeria, and the Bahamas to develop regtech and CBDC stack solutions. The company also collaborates with fintechs in other countries, offering them critical regulatory and innovation insights. Emtech’s recent partnership with the West Africa Monetary Institute further demonstrates its commitment to the African financial ecosystem.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard