Web3 startup Bastion has secured two US money transmitter licenses following a funding round involving Andreessen Horowitz. The licenses, secured in Arkansas and New Hampshire, will allow the company to offer interstate services for fungible digital assets.
According to the filings on the Nationwide Multistate Licensing System, the license also enables the company to sell or issue payment instruments, stored value, prepaid access, and to receive money for payments to other states. The license will also require Bastion to prevent entities from the US Treasury Department’s sanctions lists from using its services.
Andreessen Bullish on Bastion Web3 Vision
Bastion launched in mid-September to help companies integrate Web 3 technologies into their enterprise software. The company was started by two former Andreessen Horowitz executives, Riyaz Faizullabhoy and Nassim Eddequiouaq, who raised $25 million to help grow the company’s team and product line.
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At the time, Eddequiouaq said, the goal was to help to simplify the adoption and use of Web 3 technologies, without the technical hurdles that many users face today. According to Arianna Simpson, a general partner at Andreessen Horowitz,
“We believe in Nass and Riyaz’s vision of making Web3 safe and accessible for companies in every industry and are extremely excited to support them in making it a reality.”
In addition to its Arkansas and New Hampshire licenses, Bastion has applied to be a money transmitter in several other states. If granted, these permits would allow it to serve more businesses across the United States.
Bastion’s funding came at a time when crypto funding had all but dried up, with artificial intelligence garnering most of the spotlight. But Andreessen Horowitz is still bullish about the sector, recently announcing the opening of Web3-focused office in London.
State Licenses May Suffice for Now
Holding money transmitter licenses will enable Bastion to legally allow businesses to transact across state borders using Web 3 infrastructure. The move will likely enable B2B applications to benefit from blockchain technology without falling afoul of regulators.
Read more: 16 Best Web3 Wallets
It may also fuel the rise of the exchange of real-world tokenized assets across regional borders. The technology has garnered support from major banks but needs rules to handle the complexities of transferring possession and ownership of tokenized assets.
Approvals similar to Bastion’s may also help blockchain businesses to function in the absence of clear federal crypto rules. Most crypto businesses can function by obeying the Bank Secrecy Act, while the federal government decides how to define crypto assets and who should regulate the space.
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