Tether Investments Backs Pave Bank’s $39 Million Series A Funding Round
Pave Bank secured $39 million in a Series A funding round led by venture capital firm Accel, with participation from Tether Investments, Wintermute, Quona Capital, and other notable investors. The investment positions the Georgia-based bank to scale its programmable banking platform globally. Businesses using Pave Bank can manage fiat and digital assets in real time, automate treasury operations, and reduce reliance on intermediaries.
The funding round brings Pave Bank’s total capital raised to approximately $45 million. Founded in December 2023 by former executives from BigPay, Monzo, and VP Bank, Pave Bank addresses a critical gap in the financial services sector. Companies previously needed multiple providers for traditional banking, digital asset custody, and payment services. This fragmentation created operational inefficiencies and compliance risks while slowing access to liquidity.
Bridging Traditional Finance and Digital Assets
Pave Bank CEO Salim Dhanani stated that institutions need a trusted bridge between traditional finance and regulated on-chain finance. The platform merges prudential oversight of traditional banking with the automation and speed of digital assets. This programmable approach enables businesses to execute financial workflows automatically through application programming interfaces and smart contracts.
Programmable banking services allow businesses to automate financial operations such as payments, transfers, and treasury management through APIs or smart contracts built on digital infrastructure. The architecture supports real-time settlements, instant treasury movements, and integration of tokenized assets into balance sheets. Companies can trigger settlements based on smart contract conditions without manual intervention or traditional intermediaries.
The full-reserve model ensures complete backing of customer deposits by real assets. This approach addresses trust and compliance concerns commonly associated with digital finance platforms. Pave Bank holds a commercial banking license in Georgia, providing regulatory legitimacy for its operations.
Tether’s Strategic Investment in Financial Infrastructure
Tether Investments continues expanding its portfolio beyond stablecoin operations. The company’s diverse investment portfolio includes payment infrastructure, renewable energy, Bitcoin, agriculture, artificial intelligence, and tokenization. This participation in Pave Bank’s funding round signals a commitment to regulated banking solutions that connect stablecoins with traditional financial systems.
The strategic backing from Tether Investments aligns with broader industry trends. Quona Capital’s Ganesh Rengaswamy noted that Pave’s programmable, full-reserve approach has the potential to catalyze widespread stablecoin adoption and deepen financial inclusion across markets. The investment reflects growing institutional interest in platforms that seamlessly integrate both asset classes under comprehensive regulatory frameworks.
Financial institutions increasingly recognize the need for systems offering transparency, programmability, and global reach. Traditional banks operate on manual and siloed systems that limit automation capabilities. Pave Bank’s model enables data and money to flow together across fiat and blockchain networks without friction.
Expansion Plans and Market Impact
Pave Bank plans to use the fresh capital to expand its regulatory footprint internationally. The institution targets markets in the United Arab Emirates, the United Kingdom, and the broader European region. This geographic expansion requires securing additional licenses and building institutional-grade infrastructure to serve clients across multiple jurisdictions.
The funding supports accelerated product development and scaling of client coverage across global markets. Exchanges and market makers can manage digital assets, fiat, and fixed income products in one unified platform. The Pave Network enables direct counterparty interactions without traditional banking delays or excessive fees.
The programmable banking sector represents a significant evolution in institutional finance. By combining real-time payments, blockchain automation, and global compliance frameworks, platforms like Pave Bank serve businesses operating across both traditional and digital economies. This infrastructure supports the transition toward regulated on-chain finance that institutions increasingly demand.
Programmable Banking Transforms Financial Operations
The Pave Bank funding round highlights the convergence of artificial intelligence, blockchain technology, and compliance-first infrastructure. The platform enables new forms of financial automation previously impossible with legacy systems. Smart execution of compliance checks, automated settlement processes, and programmable treasury operations reduces operational costs while improving efficiency.
The participation of established venture capital firms and crypto-native investors demonstrates confidence in the programmable banking model. As regulatory frameworks mature and institutions seek efficient ways to access digital assets, platforms offering integrated solutions gain competitive advantages. The ability to manage multiple asset types through a single interface addresses pain points that have limited institutional adoption.
Conclusion
The $39 million Series A round positions Pave Bank to capitalize on the shift toward programmable finance. Combining traditional banking stability with digital asset innovation creates opportunities for businesses navigating both ecosystems. As the financial sector evolves, infrastructure connecting these domains becomes increasingly valuable.
