1Money raises over $20 million in seed funding to build Layer 1 ‘exclusively designed’ for stablecoin payments

Startup 1Money announced on Wednesday that it has $20 million in seed funding to build a Layer 1 "exclusively designed" for stablecoin payments.

"The seed capital will power the launch of the 1Money Network, a next-generation payment network engineered to be the fastest, cheapest, and most compliant Layer 1 protocol dedicated solely to stablecoin payments," the company said in a statement.

The round counted over a dozen participants, including F-Prime Capital, Galaxy Ventures, Hack VC, Kraken Ventures, MoonPay Ventures, CMT Digital and Bankless Ventures.

"1Money will make stablecoin payments more accessible and practical for everyday use cases, from paying friends to making e-commerce purchases and sending remittances," the startup's co-founder and CEO Brian Shroder said in a statement.

As the rate of adoption and scale of the stablecoin market rapidly expands, both startups and older institutions want to stake a claim. The supply of U.S. dollar-pegged stablecoins has been growing exponentially in recent years and is worth more than $215 billion, with Tether's USDT as the market leader. Bernstein analysts recently predicted the global will cross $500 billion in 2025.

Patent pending

1Money utilizes a "patent-pending Byzantine Consistent Broadcast (BCB) design the firm created to eliminate delays, surge pricing fees and security issues, the firm said.

"The company’s purpose-built solution delivers what businesses and users actually need: instant settlement, low and predictable fees, robust security, and seamless compliance. all while maintaining the core benefits of web3 technology," Hack VC's Ed Roman said in a statement.