Plaid, a company that connects financial applications to consumers’ bank accounts, enabling payments and data verification, has allowed employees to sell some of its shares for $8 billion, the company confirmed to TechCrunch on Thursday.

The valuation represents a 31% increase from the $6.1 billion valuation the 13-year-old company achieved in April of last year, when it raised a $575 million round led by Franklin Templeton in part for the same purpose: to help offset the taxes associated with buying back shares from employees, including converting their expiring units (RSU) into restricted stock. Shares

Despite its new, bigger headline number, Plaid’s value is still 40% below its peak of $13.4 billion in 2021, when ultra-low interest rates massively boosted fintech valuations.

Such transactions have become increasingly common among private companies as a tool to maintain liquidity. Recent examples include Stripe, which said this week it would cut employees at a $159 billion valuation. Eleven labsand Linear.

In addition to retention and to help staff cover tax bills that start when RSUs vest, they reduce pressure on management to pursue an IPO before the company is ready.