Embedded fintech services platform Colendi has infrastructure dreams with the acquisition of London-based blockchain settlements and payments provider SETL.
Financial details were not disclosed. Colendi is based in Istanbul. The Turkish company says it wants to create a new public blockchain infrastructure that will be used to host native tokens and smart contracts for Colendi’s 10+ million users.
Launched in 2015, SETL has worked with central banks and various financial institutions.
In December the fintech firm announced a collaboration with SWIFT in an interoperability proof of concept and tested its TPS blockchain to service a regulated liability network (RLN) with AWS. Earlier this year, SETL and New York-based Digital Asset teamed up to create a new protocol which can be used by regulated institutions to launch interoperable tokens.
In terms of the acquisition, SETL CEO Philippe Morel explains: “SETL could not ignore DeFi. With Colendi, we are preparing the RegFi/DeFi convergence. And we will offer to our RegFi clients the opportunity to connect in a secure manner to a public blockchain ecosystem”
After closing a $38 million (£31 million) Series A funding round last September, Colendi is making progress and says it will offer SETL’s services under its umbrella.
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In terms of its architecture-based ambition, this will be integrated into the core Colendi wallet and available to its users as the company extends its services into investment, messaging, gaming and other dApps currently under development. A native network token offering is “expected shortly”, supporting a 2023 launch.
Interoperable with SETL’s one million TPS interbank offering, the new decentralised network is “expected” to be Ethereum Virtual Machine (EVM) compatible, able to support cross-chain connectivity, and to natively support “popular formats” for NFTs and other tokens.
Many fintech firms talk about being a bridge between two worlds as it makes sense to appeal to both camps. Colendi is no exception and says its network will “bridge the gap” between public and private blockchains by allowing regulated institutions to deploy nodes which can selectively participate in public transactions whilst maintaining their own permissioned ledger.
The name Colendi probably stems from the Latin word ‘colendus’, that means ‘which is to be cultivated’ or ‘which is to be protected’.
SETL has 49 employees listed on LinkedIn. Whether those jobs are protected as part of the deal is not mentioned.
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