Pave Bank secures USD $39M to expand programmable banking

Pave Bank has raised USD $39 million in a Series A funding round led by Accel, with participation from Tether Investments and other investors.

The bank, founded in December 2023 by executives formerly at BigPay, Monzo, and VP Bank, positions itself as the first programmable bank that unifies traditional financial services with regulated digital asset management for institutional clients.

Single platform approach

Pave Bank aims to address a significant challenge faced by businesses handling both traditional and digital assets - the complexity caused by needing separate systems and providers for fiat banking, digital custody, payments, and liquidity management. By providing a single, regulated platform for both conventional and digital assets, the bank seeks to streamline operations, improve compliance, and accelerate access to liquidity for its clients.

The company's platform covers commercial banking services such as deposit accounts, broad payment coverage, payment card issuance, and corporate treasury management. In parallel, it offers institutional-grade digital asset management, an over-the-counter trading desk, and an instant settlement network, all within one regulatory framework and interface.

"The global financial system is moving towards regulated on-chain finance, and institutions need a trusted bridge between the old and the new. We have built a multi-asset bank that merges the stability and prudential oversight of traditional finance with the automation, speed, and intelligence of digital assets. This is about redefining how money moves safely, transparently, and automatically across the world's financial systems," said Salim Dhanani, Co-Founder and CEO of Pave Bank. 

According to the bank, companies utilising its services can conduct real-time treasury management across stablecoins and traditional assets, automate operations, and reduce intermediaries. Markets and exchanges can manage both digital and fiat assets alongside fixed income products in one repository and transact with counterparties through Pave's network, improving operational liquidity and mitigating risk. Corporates adopting stablecoins can integrate digital and fiat treasuries securely and compliantly, seeking to improve speed, control, and cost efficiencies.

Financial performance and growth

Since its commercial launch, Pave Bank has prioritised what it describes as a sustainable, technology-driven operating model, with an emphasis on automation and AI. The company reports having achieved profitability in seven of its first nine months of operation, a period often seen as loss-making for new banking institutions. Its team of just over fifty people intends to maintain a focus on core risk and compliance while continuing to scale.

"The companies we serve are large, sophisticated corporations and institutions operating across markets. They expect their bank to be as fast and adaptive as the technology companies they partner with, but with the security, compliance, and oversight of a regulated financial institution. That's the gap we're closing," Salim Dhanani added. 

Backers and industry outlook

The Series A round brings Pave Bank's total funding to over USD $44 million, supporting its plans to expand regulatory coverage, accelerate product development, and broaden institutional client coverage. Investors participating in the round include Accel, Tether Investments, Quona Capital, Wintermute, Helios Digital Ventures, Financial Technology Partners, Yolo Investments, Kazea Fund, and GC&H Investments.

"As digital assets become an integral part of the global financial ecosystem, there is a strong need for a well regulated, full reserve approach to banking at the intersection of fiat and digital assets. Pave Bank is at the forefront of this fundamental shift in how financial infrastructure operates and we are excited to partner with them," said Rachit Parekh, Partner at Accel.

"By powering mainstream fintechs and digital platforms through its programmable banking infrastructure, Pave is leading the new age transformation in financial services and enhancing the experience for end-users. Pave's programmable, full-reserve approach combines the best of traditional banking and digital assets and has the potential to catalyze widespread adoption of stablecoins, deepening financial inclusion across markets. It's an ambitious vision grounded in real-world execution." said Ganesh Rengaswamy, Quona Capital. 

Regulatory and future plans

Pave Bank holds a commercial banking licence from the National Bank of Georgia and operates a representative office in London, with plans to broaden its global footprint in regions including the United Arab Emirates, the United States, Hong Kong, and across the European Economic Area. From the outset, the company has prioritised compliance with evolving digital asset regulatory frameworks and continues to work alongside regulators to ensure operational interoperability across jurisdictions.

The bank's stated long-term vision includes expanding its licensing coverage, deepening programmable treasury and institutional financial products, and integrating with broader financial and digital asset sectors. The objective is to serve as a single bridge between traditional and digital economies for corporate and institutional clients.