Financial firms looking to accelerate money transfers with crypto have no shortage of options when it comes to blockchains, including Ethereum, Solana and Avalanche. That hasn’t deterred a startup called Alta from trying to lure banks and big companies with a blockchain of its own. The chain seeks to stand out with its plug-and-play compliance layer that lets customers ensure that any transactions they process are consistent with rules and regulations anywhere in the world.
On Tuesday, Alta announced it has raised a $47.5 million a Series A round at an undisclosed valuation. The new round, which was led by Index Ventures, comes after the startup raised $32.5 million in seed funding backed primarily by the Australian fintech giant Airwallex, which is taking on Stripe and others in the global payments space.
The CEO of Alta is Loong Wang, who founded an earlier crypto startup that he sold in 2021, and then pivoted to a second startup that employs quantum computing to aid in drug discovery. Wang returned to crypto technology to found Alta, which recently rebranded from its original name of Metal, alongside former Meta executive Catherine Porter, who helped oversee the company’s since-abandoned crypto venture.
In an interview with Fortune, Wang explained that, even at a time when there are a multitude of so-called Layer 1 blockchains, he chose to build another because he believes blockchain is the best technology for transferring money. He added that none of the existing options offer a set of privacy and compliance tools designed for banks and other large financial players.
“We often say we wouldn’t have built an L-1 if we didn’t have to,” said Wang, noting that Alta’s features include one that prevents random people from sending funds to those with an address on the blockchain. (Most blockchains allow for so-called “airdrops” that oblige wallet holders to accept funds whether they want to or not).
Alta, which has 25 employees and offices in San Francisco and Melbourne, is also notable for its close ties to Airwallex. Those ties include a personal connection between Wang and Airwallex CEO Jack Zhang, who was a crypto skeptic, but recently acknowledged the inherent value of stablecoins when it comes to cheap and efficient money transfers.
Airwallex is also serving as a massive distribution channel for Alta, persuading its global network of customers to use the startup’s platform for crypto transactions. This comes at a time when Airwallex’s main rivals, including Stripe and its Tempo blockchain, are likewise building out crypto infrastructure.
“With the rise of agentic banking and programmable payments, stablecoins are becoming an important vector for settlement,” said Zhang in a statement announcing Alta’s latest funding round.
Also participating in the Series A funding round were GV (Google Ventures), Blackbird Ventures, Square Peg and Capital49, a venture firm established by Airwallex’s cofounders.