Mark Cuban-backed banking app launches out of stealth with $6M

Seattle-based fintech startup Seashell has launched out of stealth with a $6 million seed round.

The startup, which is backed by celebrity billionaire Mark Cuban and Robinhood co-founder and CEO Vlad Tenev, says it offers users up to 10% interest through its savings app by investing in assets like digital currency and gold. Although accounts are not insured by the Federal Deposit Insurance Corp., Seashell founder and CEO Daryl Hok said blockchain technology can help money grow when consumers don't need it while still being easy to withdraw.

"What we're doing is actually looking to build an application in which money that's inside of it can always be spendable and growing," said Hok, a former Business Journal 40 Under 40 honoree. "What we're trying to do is take the benefits of physical cash, which is fee-less, with the benefit of digital convenience."

As for how Seashell is able to provide such high interest rates, Hok says the fintech startup invests deposits in crypto lenders, which are able to charge higher rates due to crypto's volatility. Traditional banks that lend deposits out for the likes of student loans and mortgages, on the other hand, charge much lower rates and generate less income for consumers.

Seashell, which is free, makes money by taking a share of the profit earned on deposits. Hok said the interest rates earned by users depend on factors like tenure of account and direct deposits. Users can sign up online, and although users currently have to sign up for a waitlist, Hok said he expects the product to launch in the first quarter.

The company has about 15 employees, according to Hok, and although most are remote, a couple are in the Seattle area. Hok said the company expects to raise funding again soon and should triple or quadruple its staffing in a year.

Khosla Ventures and Kindred Ventures led the seed round, while Coinbase Ventures and others participated.

Hok said Seashell doesn't have concrete office space right now but will probably look to add some eventually. He said a big reason for setting up operations in Seattle is the talent. As for the startup's name, Hok said cowrie shells were how people traded in ancient times.

"Back then, of course, there were no fees," Hok said. "We want to bring it back to how it was while taking in the evolution of technology."