Riva Money Raises $3M to Build Dual-Rail Payments Platform

Former Revolut and Wise executives Niklas Höjman and Mahendra Katoch have raised $3M to launch Riva Money, a cross-border payments startup using a hybrid of blockchain and traditional banking rails to reduce costs and time for international transfers. The company is seeking regulation and targeting corporate clients, betting on a future where the fastest and cheapest path wins in B2B payments.

Two former executives from Revolut and Wise have raised $3 million to launch Riva Money, a startup focused on modernizing cross-border payments. The pre-seed funding round was led by Berlin-based Project A, with angel backing from alumni of Revolut, Monzo, and JPMorgan [3].

Riva Money aims to address the inefficiencies of traditional cross-border payment systems by combining blockchain technology with traditional banking rails. The company's hybrid approach seeks to optimize each payment's speed and cost by determining the best route in real-time, whether it be through blockchain rails using stablecoins or traditional fiat-to-fiat networks [1].

The funds will be used to expand Riva's engineering team and push through licensing ahead of an expansion into Europe, Asia, and North America. The company is seeking authorization as a payment institution across the United Kingdom and the European Union, as well as a Markets in Crypto-Assets (MiCA) license in the EU and a virtual asset service provider (VASP) license in Switzerland [1].

Riva's co-founders, Niklas Höjman and Mahendra Katoch, believe that the future of B2B payments lies not in a blockchain-versus-banks fight, but in a routing game where the fastest and cheapest path wins. They aim to provide businesses with the speed, transparency, and cost-efficiency they need to thrive in today's interconnected economy [3].

The move comes as stablecoin rules are firming up in Europe and treasurers become more open to on-chain settlement for certain corridors. Circle, a publicly listed U.S. company known for its USDC stablecoin, has revealed plans to launch a new Layer-1 blockchain later this year, designed to provide an "enterprise-grade foundation" for stablecoin payments, foreign exchange, and capital markets [2].

Circle's Q2 revenue hit $658 million, with USDC circulation rising to $65.2 billion, demonstrating the growing interest and adoption of stablecoins. The company's latest initiative, Arc, a Layer-1 blockchain optimized for stablecoin payments, is set to be released this fall [2].

As the stablecoin market continues to grow, with the total market currently over $282 billion, Riva Money's innovative approach to cross-border payments could significantly impact the industry. By combining blockchain technology with a robust regulatory framework, Riva Money is poised to offer businesses a more efficient and cost-effective solution for international transfers [1, 2, 3].

References:
[1] https://www.pymnts.com/news/international/global-payments/2025/riva-raises-3-million-dollars-blockchain-based-solution-global-money-transfers/
[2] https://coinpedia.org/news/circle-to-launch-enterprise-grade-layer-1-blockchain-for-stablecoin-payments/
[3] https://financefeeds.com/former-revolut-wise-execs-land-3m-to-build-dual-rail-payments-firm/