Payment Network Peanut Raises 1.5 Million Dollars for Digital Currency Transfers

According to a press release, Peanut, a payment network startup, has secured $1.5 million in pre-seed funding to develop its digital dollar transfer platform. The company aims to create a system for sending stablecoins across borders without requiring users to have technical knowledge of digital currencies.

The platform currently operates across more than 20 networks, allowing users to send and receive digital dollars with direct conversion to U.S. Dollars or Euros in their bank accounts. The system bypasses traditional banking infrastructure to deliver near-instant transfers without the usual delays of international payments.

Peanut has developed a URL and QR code payment system that works through common communication platforms such as WhatsApp, Telegram, email, and SMS. Users can send money to anyone, regardless of whether the recipient uses digital dollars or traditional banking services.

Harvard graduate and Peanut co-founder Hugo Montenegro explains that the platform makes sending money as straightforward as sending a text message. The company uses the system for freelancer payments, offering transfer speeds similar to Venmo or PayPal but without banking delays or additional costs.

The technology behind Peanut uses smart contracts to maintain security and self-custody while keeping the user experience simple. Several financial technology companies, including Blockscout, WalletConnect, and Clave Wallet, have started using Peanut's technology in their payment systems.

Co-founder Konrad Urban points to the platform's potential impact in regions like Argentina, where improved access to dollars is needed. The company plans to expand its services to additional platforms beyond the current 20 supported networks.