A fintech startup based in Essex has raised $4.2 million in seed funding to support development of software designed to help financial institutions manage digital-asset payments.
The company, , currently has five employees, including two based in Connecticut, with the remainder working remotely.
Coinbax said it is developing technology intended to give banks and enterprises greater control over stablecoin transactions, including features such as multi-party approvals, spending limits and conditional payment releases, aimed at fitting blockchain-based payments into existing compliance and risk frameworks.
Stablecoins are digital currencies designed to maintain a stable value by being tied to traditional assets such as the U.S. dollar, and are often used to facilitate faster payments and transfers on blockchain networks.
The funding round was led by BankTech Ventures and included participation from Connecticut Innovations, the state’s quasi-public venture capital arm, along with Paxos, SpringTime Ventures and other investors.
The company said it plans to use the funding to accelerate engineering development, deepen integrations with custody and digital wallet infrastructure providers, and support onboarding of early design partners across commercial banking and enterprise payment operations.
Coinbax was founded by CEO Peter Glyman, a Connecticut entrepreneur who previously co-founded Geezeo, a financial software company acquired in 2019.
