Andreessen Horowitz led a USD 4.5 million seed funding round for ModernFi, a marketplace that lets banks exchange deposits on demand.
Through its deposit marketplace, ModernFi connects banks with extra deposits and banks in need of capital. ModernFi claims it is already working with US-based banks with assets ranging from USD 500 million to USD 100 billion thanks to a tech stack built on a foundation of compliance and regulatory adherence.
According to the startup, the marketplace gives banks a place to dump extra deposits, which helps them control the size of their balance sheets and generates potential revenue.
Read More: Deposit marketplace for banks ModernFi raises $4.5m
