ABN Amro, solarisBank, Earlybird Invest $14M in Blockchain Startup CrossLend

The Dutch bank ABN Amro, Earlybird, and Berlin-based fintech startup solarisBank have invested in blockchain-oriented startup CrossLend. The companies took part in a $14 million funding round. CrossLend, also based in Berlin, leverages distributed ledger technology (DLT) to develop a European debt exchange.

CrossLend was founded in 2014 as an online marketplace for bonds and other types of loans. The company specializes in debt securitization, enabling users to create a bond portfolio while offering new financing channels to European MSMEs.

Christian Nagel, a partner at VC firm Earlybird, is positive about CrossLend's plan to shift from an online investment bank to a debt exchange. He commented:

“We strongly believe that their plan to tokenize debt items and hence introduce blockchain-based settlements will lead to more transparent loan books and at the same time more efficient debt capital markets.” “Global borrowers, regardless if they are SMEs or direct consumers, will benefit as markets will become more liquid. Billions of additional capital for SME financing could be unleashed - solving one of the major global issues in financial markets,” Nagel added.

Both ABN Amro and solarisBank plan to integrate the CrossLend platform with their corporate financing operations. ABN Amro invested through its VC arm called Digital Impact Fund (DIF), which focuses on fintech firms. The VC branch has several fintech companies in its portfolio, including solarisBank. According to the strategic partnership between DIF and CrossLend, Dutch companies will have easier access to international capital.

The Dutch bank is open to exploring the potential of DLT for various use cases. In June, we reported that ABN Amro clearing, together with EuroCPP, Euroclear, and Nasdaq, had succeeded in a blockchain trial focused on managing collaterals in margin calls.

CrossLend CEO Oliver Schimek said that the three companies are the type of investor that would encourage its expansion.

“Our aim is to make the whole international lending ecosystem more efficient, more transparent and more profitable. And to make sure that we serve both banks and entrepreneurs – a win-win-win,” he said.