P2P.me, a blockchain-based cryptocurrency-to-fiat application, has successfully raised $2 million in a seed funding round led by Multicoin Capital and Coinbase Ventures.
Step-by-Step Breakdown of the Information:
1. What is P2P.me?
P2P.me is a decentralized peer-to-peer (P2P) platform designed to facilitate crypto-to-fiat transactions without relying on traditional financial systems or centralized exchanges. The app enables users to pay in stablecoins like USDC while ensuring that the recipient receives fiat currency. This process is achieved through a network of middlemen who accept stablecoins and transfer equivalent fiat to the intended recipient.
The platform operates without using conventional on-and-off ramps and prioritizes privacy by employing zero-knowledge proofs for user verification. Unlike traditional financial institutions, P2P.me does not store personal data such as government IDs or social media information.
2. How Does P2P.me Work?
The app uses blockchain technology to decentralize crypto-to-fiat transactions:
- A sender pays in stablecoins (e.g., USDC).
- Middlemen within the network convert the stablecoins into fiat currency.
- The fiat amount is sent to the recipient within approximately 90 seconds.
This innovative approach addresses challenges in regions with limited access to traditional banking systems or credit card infrastructure, such as Indonesia, Nigeria, and Vietnam.
3. Seed Funding Details
The $2 million seed funding round was backed by prominent investors:
- Multicoin Capital: A venture capital firm specializing in blockchain and cryptocurrency investments.
- Coinbase Ventures: The investment arm of Coinbase, one of the largest cryptocurrency exchanges globally.
The funds will be used to expand P2P.me’s team (currently at 20 members) and support its planned expansion into Latin America. Additionally, the company aims to scale its operations globally by leveraging local communities that face difficulties navigating established financial systems.
4. Current Usage and Growth
As of now:
- P2P.me has processed $1.6 million worth of payments.
- It serves around 1,100 users primarily located in Indonesia, Nigeria, and Vietnam.
- The platform plans to launch its own token within the next year to shift control to its community and further decentralize operations.
5. Future Plans
Built on Base (an open protocol), P2P.me intends to introduce a token within 12 months. This token will enable community governance and help scale the platform globally by reducing reliance on centralized exchanges.
Recap!!
The successful $2 million seed funding round highlights growing interest in decentralized solutions for crypto-to-fiat transactions. With backing from Multicoin Capital and Coinbase Ventures, P2P.me is well-positioned for global expansion while addressing privacy concerns and financial inclusion challenges in underserved markets.
