Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Vixichain’s ‘Blockchain for Banks’ Raises $7M Funding

Vixichain’s ‘Blockchain for Banks’ Raises $7M Funding

DailyCoinDailyCoin2024/11/06 14:00
By:DailyCoin
  • Vixichain raised $7M in funding.
  • The private blockchain aims to connect banks to crypto. 
  • Banks have maintained a distance from Web3 thus far. 

Banks and other financial institutions worldwide are interested in blockchain networks. Despite this, they face significant barriers to actually using this technology. Privacy and regulatory constraints make banks reluctant to use public blockchains. 

Sponsored

One company working to fix this issue is Vixichain. Recently, this company raised $7 million in funding for its private blockchain. This network will enable banks to use blockchain technology securely while also getting access to decentralized finance (DeFi).  

Vixichain Raises $7M for Compliance-Focused Blockchain

Banking institutions have come one step closer to adopting blockchain tech. On Friday, October 25, Vixichain raised $7 million in a private funding initiative for its private blockchain for banks. The network will enable banks to serve as validators and offer them a secure on-ramp to DeFi. 

BIG announcement 🎉 #Vixichain has raised $7M in #funding to build THE Proof of Trust hybrid blockchain that:

👉 Leverages #financial institutions as nodes
👉 Offers a fine balance of privacy and compliance
👉 Revolutionizes global transactions
👉 Implements EDI (Encrypted…

— Vixichain (@Vixichain) October 25, 2024

This latest fundraising is part of Vixichain’s goal of raising $11 million by the end of the year. The money will go towards research and development, finding banking partners, and preparing for the mainnet launch. 

Vixichain’s blockchain is focused on compliance. It offers built-in Anti-Money Laundering (AML) and Know-Your-Transaction (KYT) protocols and privacy-preserving features. The blockchain secures transactions through an advanced and fiat-backed NFT stablecoin (NUSD). This stablecoin will enable banks to interact with DeFi without compromising user privacy. 

Why Banks Need a Private Blockchain

Blockchain networks are typically public ledgers that reveal all transactions. This makes transactions pseudonymous but not private. While this offers a significant degree of transparency, it also introduces risks to privacy. 

Authorities, investigators, and analytics firms can connect the pseudonymous wallets with their users. For instance, the analytics firm Nansen specializes in labeling wallet addresses with the suspected names of their users. While Vixichain does not claim to provide a foolproof solution against probing by authorities, it emphasizes built-in protocols designed to preserve the privacy of financial and user data, all while ensuring compliance with regulatory bodies.


For banks, this introduces user privacy concerns and regulatory issues. As a private blockchain, Vixichain enables banks to work as validators on the network and, therefore, retain data sovereignty. The nUSD stablecoin facilitates using digital stable currencies backed by fiat, allowing network participants to conduct business through traditional financial institutions. This includes enabling credit card payments and allowing users to make transactions as they would with traditional fiat money.

On the Flipside

Vixichain is not the only network with privacy features. In October, Chainlink released private transactions for its Cross-Chain Interoperability Protocol (CCIP). The update allows institutions to set privacy settings for each transaction. 

A recent study showing that Ripple is in partnership with 80% of Japanese banks suggests the growing appeal of blockchain among banks. 

Why This Matters

Traditional banks are increasingly aware of the benefits of blockchain technology. Vixichain removes a serious concern for these institutions, potentially bringing them into the ecosystem. 

Read more about privacy in DeFi: 
How Private Can DeFi Be?

Read more about memecoins: 
How High Can the Memecoin Market Go? ArkStream Capital Forecasts

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Will Dogecoin (DOGE) Continue Its Rise? Two Experienced Analysts Evaluated and Announced Their Price Predictions!

Analysts said Dogecoin could rise even higher.

Bitcoinsistemi2024/11/07 06:22

Ripple Made a Statement After Donald Trump’s Election as President – CEO Garlinghouse Demands 4 Matters from Trump

Ripple officials released a statement via X after Donald Trump was announced as the 47th President of the United States.

Bitcoinsistemi2024/11/07 06:22