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- Franklin provides greater security and transparency in payment processing.
- Franklin to use its latest funds to diversify into health insurance and retirement plans.
- Franklin has short-term intentions to increase the range of services.
With Franklin’s payroll software, businesses can pay employees in cryptocurrencies, which is oftentimes a quicker and more affordable option than using standard payroll methods. The platform also provides greater security and transparency in payment processing by utilizing blockchain technology.
Franklin recently raised $2.9 million in a seed funding round, which was led by venture capital firms gumi Cryptos Capital (gCC), and CMT Digital, among other investors. The company will use the funding to improve its platform and reach more businesses and workers. Innovation in the crypto industry is intriguing, and it will be interesting to see how Franklin and other crypto payroll companies develop and challenge established payment systems in the future.
Franklin’s Construction
The choice to construct Franklin was a “no brainer,” according to Serotonin CEO Amanda Cassatt, who approved the project after learning that several of their clients from their public relations boutique needed crypto payroll options.
At least three internal projects that Serotonin created have already been spun off as distinct businesses or will do so soon. The apparent success of Mojito, a non-fungible token (NFT) back-end solution utilized by Serotonin’s clients, who were starting to investigate the Web3 economy, and most notably the venerable auction company Sotheby’s, led to Franklin’s seed investment.
It’s a tactic that seems to be working for Serotonin, which offers employees a portion of the company’s ownership but hasn’t taken on debt or sold shares to outside investors, according to Cassatt. In its first year of operation, Mojito generated $120 million in sales revenue, but since then, sales have slowed due to the weak market. Franklin did not have access to comparable data.
A More Flexible Payroll?
Franklin founder and CEO Megan Knab said in an interview that they’re focused on delivering a more flexible payroll experience, which is why they have a hybrid cash and crypto solution. They further discovered that many Web3 native teams wanted to use cryptocurrency, but the associated administrative burden—from tax form preparation to compliance to accounting—was too much for them.
According to Knab, most of Franklin’s current clients use stablecoins for transactions and handle cryptocurrency payments for staff bonuses. Franklin asserts that it can also complete transactions in dollars within two working days.
Franklin And The Third Skunkworks Project
The third skunkworks project, which has not yet been publicly disclosed, combines tokens and the creative economy. Franklin intends to use its latest funds to diversify into health insurance and retirement plans. The news release lists Soul Wallet, Echooo, and Alto as its customers.
Serotonin is well-positioned to identify fundamental operational tools that need to be built because the company collaborates closely with crypto clients to develop long-term marketing and business strategies, as well as venture capital firms that finance many of Web3’s largest projects, Cassatt said.
The VP and associate of Sapphire Ventures, Jason Brooke, invested in the first round of the Franklin’s seed round.
Franklin has short-term intentions to increase the range of services it provides by integrating cryptocurrency into retirement savings accounts, health insurance, and other layer-2 blockchains. After the demise of FTX, the financial services behemoth Fidelity started allowing businesses to diversify their 401(k) retirement plans with Bitcoin investments last year. However, in November 2022, three U.S. senators asked Fidelity to stop providing Bitcoin 401(k) to customers.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
