FV Bank offers an online-only banking platform. Credit: Steve Buissinne from Pixabay.

FV Bank, a challenger bank and digital asset custodian, has raised $8m in a Series A funding round at a post-money valuation of $48.9m.

The round saw participation from BnkToTheFuture, Decentralized Ventures, NFG Fund, CCIX Global, Zenrain Technology, and Satvat.

The firm plans to use the proceeds to launch its digital asset custody division, develop debit card offering, and accelerate international expansion.

Headquartered in Puerto Rico, FV Bank also plans to offer interest-bearing products and B2B lending services by next year and aims to increase its asset under management to $750m-$1bn.

Founded in 2018, FV Bank offers an online-only banking platform that has a digital asset custody licence issued by the Office of the Commissioner of Financial Institutions (OCIF).

It is also working on a hybrid solution for companies that will hold fiat and digital assets in the same account and convert digital assets to fiat currency.

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FV Bank CEO Miles Paschini said: “We are focused on expanding our core suite of vertically integrated banking services to meet the demonstrated needs of institutional clients who are not catered to by the traditional banking sector. The demand for banking services in the FinTech and digital asset industries currently far outweighs the supply.”

BnkToTheFuture CEO Simon Dixon said: “Banking for FinTech companies is still a major challenge for many of the companies we’ve invested in and it requires a fit for a purpose challenger bank. As soon as we saw FV Bank’s expansion plans we wanted to not only bank with them but also support their funding so they can serve FinTech companies building the future of finance.”