A new startup called GST, founded by Elon Musk and a few other venture capitalists, is eyeing a $3 billion valuation and is offering $3 million in seed funding.
The venture is in the process of raising about $500 million.
The startup will build its own blockchain, which is designed to facilitate payments and transfers in a transparent manner.
GST plans to launch its service in 2021, with the goal of being one of the largest payment processors in the world by 2020.
The new venture is currently working with venture capital firms including Kleiner Perkins Caufield & Byers, and New York City-based startup TPG Ventures.
The company’s CEO, Adam Gostelow, said GST is “going to be one of our biggest investments ever.”
The company is based in Palo Alto, California.
Gostelsaw says the startup has raised $2.3 million from a number of private equity firms, including Kleins, Union Square Ventures, Greylock Partners, Sequoia Capital, and Andreessen Horowitz.
Gustave Toussaint, chief executive officer of Kleiner Ventures, said the company was “proud to partner with GST.”
He added that GST was a “good fit” for the company, noting that the venture capital firm “loves our work and understands the potential value.”
He said that the company has been in the startup space for several years.
“I believe we can make something happen with Gst,” Tousseaux said in a statement.
He added: GST will be one a new way of doing business in the payments space.
“In the world of technology, we are seeing this incredible growth and I believe it’s time to bring our technology to a broader audience.
This is the kind of technology that makes it possible for a large number of people to have more financial control and autonomy than ever before,” he said.
Musk said he’s looking forward to working with GUST, which has been described as “a revolutionary and disruptive new way to build an economy.”
“We are excited about this opportunity to bring technology to the world that will change the way people get their financial information, manage their money, and access their money,” Musk said in the announcement.
“We can’t wait to see what this amazing company can do.”
GST aims to be the “world’s largest and most trusted payment processor” and will offer its services to banks, credit unions, and merchants.
Musk is a leading investor in many bitcoin startups.
In January, he invested $1 million in a new bitcoin startup called Digital Currency Group.
In a separate investment, he said in August that he hopes to make at least $2 billion in the next 12 months.
The funding is an attempt to increase his stakes in bitcoin and other cryptocurrencies.
Musk also said in June that he wants to create a company that will provide an API for cryptocurrencies, such as bitcoin, to be used by merchants and other businesses.
A month later, he announced plans to create an “internet of money.”
In August, he reiterated that goal, telling Bloomberg TV that the project would create a “platform that will enable millions of people around the world to make transactions without a bank account, without a credit card, without an exchange rate, without any intermediaries.”