The cryptocurrency mobile payment company Oobit has secured $25 million in Series A funding, with participation from Tether and Solana.
The funding round was led by prominent players in the cryptocurrency space, including Tether, Solana co-founder Anatoly Yakovenko, CMCC Global, and 468 Capital, marking a strategic collaboration to enhance the accessibility and usability of cryptocurrencies in everyday transactions.
Vision and functionality of Oobit: funding from Tether and Solana
Founded in 2017, Oobit aims to simplify the process of purchasing goods and services with cryptocurrencies, reflecting the convenience of traditional payment methods like Apple Pay. The company’s mission is to eliminate “merchant friction,” allowing users to seamlessly tap and pay using its mobile app.
The CEO of Tether, Paolo Ardoino, has expressed the company’s commitment to welcoming new users into the cryptocurrency ecosystem through strategic investments. According to Ardoino, Oobit acts as a catalyst, breaking down barriers and facilitating frictionless transactions for cryptocurrency holders worldwide.
Oobit’s commitment aligns with the broader trend in the fintech industry, where companies like PayPal, Nubank, and Visa are actively working to make cryptocurrency transactions smoother. Traditional fintech companies are recognizing the growing demand for cryptocurrency integration and are adapting their services to meet this shift in consumer behavior.
Visa, for example, has recently partnered with web3 company Transak to simplify spending and withdrawals of cryptocurrencies using a debit card. This collaboration highlights the industry-wide recognition of the importance of bridging the gap between traditional financial systems and blockchain technologies.
Current capabilities and future plans of Oobit
Currently, Oobit allows consumers to spend cryptocurrencies in traditional commercial contexts. However, the company has ambitious plans to expand its capabilities by allowing third-party external wallets. This strategic move aims to transform Oobit into an unrestricted cryptocurrency payment application, giving users greater control over their digital assets.
Martin Baumann, co-founder and Managing Partner of CMCC Global, emphasized his commitment to promoting innovation that connects blockchain systems to traditional financial systems.
This sentiment echoes the growing recognition, by the financial sector, that blockchain and crypto technologies are here to stay and that it is crucial to find a way to integrate them into traditional financial services.
The involvement of Tether in Oobit’s funding round adds an interesting layer to the narrative. Tether, being a stablecoin anchored to the value of traditional fiat currencies like the US dollar, brings stability to the often volatile world of cryptocurrencies.
This stability is crucial for broader adoption and for use in everyday transactions, reinforcing Tether’s commitment to creating a user-friendly cryptocurrency ecosystem.
Anatoly Yakovenko, co-founder of Solana, who also participated in the funding round, testifies to the collaborative nature of the cryptocurrency space. Solana, known for its high-performance blockchain, can contribute its technical expertise to improve Oobit’s infrastructure, making cryptocurrency transactions faster and more efficient.
The success of Oobit’s Series A funding round, with the participation of industry leaders such as Tether and Anatoly Yakovenko from Solana, marks a significant step forward in the journey towards mainstream adoption of cryptocurrencies.
The goal of the company, which aims to remove “merchant frictions” and transform into an app for non-custodial cryptocurrency payments, reflects the broader trend of traditional financial operators and blockchain enthusiasts collaborating to create a more accessible and user-friendly cryptocurrency ecosystem.
The evolution of the dynamics of the sector suggests that cryptocurrencies are on track to become an integral part of daily financial transactions.