Launching a startup is challenging, but doing so during one of the worst downturns in crypto history required a different level of resilience. At Coinflow, we did not just navigate the storm. We built through it.
In late 2022, as the industry reeled from the FTX collapse, trust in crypto payments plummeted. Businesses hesitated, banks were cautious, and investors pulled back. However, for us at Coinflow, this was an opportunity. The demand for reliable and compliant payment solutions had never been higher.
Through the downturn, we focused on solving real payment problems for Web3 businesses. That clarity helped us attract early adopters and build a product positioned for long-term growth.
Launching when the FTX collapse disrupted the industry meant entering a market filled with uncertainty. Trust in crypto payments had declined, investors disappeared, and businesses distanced themselves from anything tied to digital assets. Many payment providers shut down or struggled to adapt to regulatory changes. Instead of waiting, we continued building.
Financial institutions were skeptical about anything involving blockchain technology. Banks imposed stricter AML controls while payment processors reconsidered their risk tolerance for crypto ventures. We wanted to demonstrate reliability by addressing the immediate challenges. In reality, that meant taking the lead and defining compliance standards beyond the expectations of banks.
We worked closely with businesses experiencing payment failures and off-ramping challenges, while simultaneously building relationships with banking compliance teams. The dual approach helped us refine our value proposition and establish a solid operational structure. By addressing both merchant pain points and regulatory requirements from the beginning, we created a foundation capable of handling continued market volatility.
Finding product-market fit before launching helped us tremendously. We had customers coming to us even before we pivoted to pure payment solutions. Web3 businesses faced significant friction in handling payments, from onboarding users to managing fiat off-ramps.
Channel partnerships played a key role in early adoption. We integrated with payment processors, banking institutions, and fintech infrastructure providers. These relationships expanded our reach and positioned Coinflow as the default option for businesses seeking reliable fiat/stablecoin conversion.
Almost more important than the product, was how our team fit into the operating frame of banks. Operational know-how in the banking sector truly separated us from other players. We focused on building compliance capacity in our team, because we realized that integrations aren’t just a product conversation, they’re a people consideration too.
Coinflow has helped businesses create seamless financial experiences. By integrating with our infrastructure, companies across various industries have reduced friction, improved transaction speed, and enhanced user trust. Here are a few examples of how we’ve made an impact.
Courtyard.io, a digital collectible marketplace, needed a seamless way to onboard users unfamiliar with crypto payments. Their crypto only checkout created friction, leading to abandoned purchases. By integrating Coinflow’s payment system, Courtyard reduced barriers for buyers, allowing them to purchase collectibles through apple pay, google pay, and credit cards without navigating complex wallet setups.
Audius, a decentralized music streaming service, sought a frictionless way to handle payments for artists and listeners worldwide. Traditional payment providers lacked the flexibility Audius needed. Coinflow enabled instant stablecoin settlements, removing payout delays and ensuring artists received earnings without long processing times. By integrating Coinflow’s payment infrastructure, Audius improved its platform’s appeal to artists with faster, more reliable payouts.
Baxus, a global marketplace for high-end spirits, required a secure and scalable solution for processing payments. They faced high fees and slow settlements with traditional payment providers. Coinflow introduced instant settlements, reducing processing costs and enabling sellers to access funds immediately. This integration improved cash flow for merchants and strengthened Baxus’ ability to scale it’s user base.
Our compliance-first approach defined our market position. Many payment companies tried to bypass regulations, only to face pushback later. We worked with regulators to understand how to operate in spaces that are still waiting for regulatory clarity. We retained the brightest legal firms to guarantee that our operations remained compliant within the current regulatory frameworks.
Building strong banking relationships played a sizable role in our progress. We prioritized transparency, demonstrating security measures, risk management practices, and a structured approach to integrating stablecoins with traditional finance. This convinced banking partners to explore collaboration with us, despite our crypto associations.
Developing a strong technical infrastructure allowed businesses to process payments efficiently. Merchants required both reliability and competitive pricing from their payment processors. Our solution enabled them to accept stablecoin payments while settling in fiat, or vice versa, without requiring extensive operational changes. The simple API integration meant implementation took days rather than months. Like any good magic trick, our partners enjoyed the benefits without needing to fully understand the stablecoin mechanics happening behind the scenes.
Our customer base continues to grow. Early adopters included Solana Labs, which selected Coinflow after rigorous due diligence, reinforcing confidence in our platform. As of May 2024, Coinflow has secured $2.25M in seed funding led by CMT Digital, with support from Reciprocal Ventures, Jump Crypto, Draper Dragon, and Digital Currency Group. This investment follows a pre-seed round in early 2023, with most investors increasing their commitments.
Today, we support over 50 live merchants and continue to expand, ensuring businesses can process transactions efficiently.
Companies recognize the benefits of lower fees and faster settlements, leading to steady adoption. Coinflow processes over 500,000 payments monthly, handling millions in transaction volume across multiple industries.
To manage this growth, we continue to scale our team. Our compliance, financial operations, and legal divisions have grown significantly, doubling down on our domain expertise. While the initial focus was on engineering, our broader operational framework now supports customer onboarding, risk management, and regulatory engagement. By strengthening these areas, we sustain long-term expansion and maintain reliability in a rapidly changing market.
The market opportunity for digital payments continues to grow. Businesses outside of Web3 are exploring stablecoin transactions, cross-border payments, and instant settlements. Coinflow is positioned to lead this change, bridging the gap between blockchain and traditional finance.
We are expanding partnerships with financial institutions, regulatory bodies, and payment processors. By increasing stablecoin accessibility and ensuring compliance, we make digital payments as seamless as credit card transactions. Our platform abstracts stablecoin settlement, allowing us to serve both Web2 companies and Web3 enterprises without requiring them to manage blockchain complexities.
Our industry vision remains clear. Payments should be instant, cost-effective, and globally accessible. Coinflow is building the infrastructure to make that a reality.
Companies that succeed in payments do not wait for perfect conditions. They build for the future. Coinflow is proof that innovation thrives in challenging markets.
Schedule a demo with our integration team to see how your business can benefit.
The future of payments, delivered today.
News
Coinflow proudly announces the successful completion of SOC 2 compliance, reinforcing our commitment to protecting customer data, enhancing operational integrity, and building lasting trust.
News
Discover how Argentine fintech Takenos unlocked global scale, doubled approval rates, and expanded into new markets by integrating…
News
Daniel Lev, CEO and co-founder of Coinflow, shares his perspective on the $25M Series A funding, the urgent need for instant cross-border payments, and what this milestone means for merchants and the payments industry at large.
