Axoni, a distributed ledger tech firm, has scored another big-bank investor in Citigroup.
The New York startup would not specify the amount Citi has invested in it, but it now sizes its Series A round at more than $20 million. When the round was announced in December, with Wells Fargo and Euclid Opportunities, ICAP’s fintech investment business, as the lead investors, the total was $18 million. Simple math therefore suggests Citi put in more than $2 million.
It is worth noting that the investment is coming from Citi itself, not the company's Citi Ventures fund. Axoni’s other Series A investors include Goldman Sachs, JPMorgan Chase, Thomson Reuters, Andreessen Horowitz, FinTech Collective, F-Prime Capital Partners and Digital Currency Group.
The banks' backing of Axoni speaks to a larger trend occurring in the nascent blockchain field: the spreading of bets. Banks are joining — and in some cases, leaving — various projects as they try to pick the winners in the still-evolving technology field.
Signage is displayed outside of a Citigroup inc. Citibank branch in the Little Tokyo neighborhood of Los Angeles, California, U.S., on Monday, July 13, 2015. Citigroup Inc. is expected to report second-quarter earnings results on July 16. Photographer: Patrick T. Fallon/Bloomberg
Patrick T. Fallon/Bloomberg
Although Citi is new to the company as an investor, the two companies “have collaborated on a number of successful, high-profile distributed ledger deployments that have validated the technology and its benefits of data synchronization, automation, and auditability to market participants,” Axoni said in a press release Thursday.
Those projects include the optimization of post-trade data management for credit-default and equity swaps and the management of reference data. Citi is also “actively engaged” in Axoni’s work in the replatforming of the Depository Trust & Clearing Corp.’s trade information warehouse, the startup said.
In January, the DTCC tapped IBM, in partnership with Axoni and R3, to use distributed ledger technology to improve post-trade events in derivatives such as record keeping and payment management.
The retail giants are kicking the tires on their own currencies. The potential prize is a way to reimagine prepaid cards and gain a key position as new forms of artificial intelligence-powered payments take off.
Primis Bank plans to sell an undisclosed amount of its 19% ownership stake in Panacea Financial, a digital-only lender focusing on medical professionals and veterinarians. The deal should yield $22 million.
The impact of President Trump's tariffs is the top concern for most middle-market American businesses, a new KeyBank survey found. But these firms also view the scrambled landscape as a chance to innovate and restructure.
The Federal Reserve Board banned a former relationship banker in Arkansas after he was caught stealing customer funds; Benchmark Federal Credit Union plans to merge with Franklin Mint Federal Credit Union to form a $2.1 billion-asset institution; Robin Vince, CEO of Bank of New York Mellon since 2022, has been elected chairman of the board; and more in this week's banking news roundup.
