Conduit Raises $36 Million to Expand Stablecoin Payment Network

Conduit, a cross-border payments company based in Boston, has successfully raised $36 million in a Series A funding round. The investment was led by Dragonfly and Altos Ventures, with additional participation from Sound Ventures, Commerce Ventures, DCG, Circle Ventures, and previous investors Helios Digital Ventures and Portage Ventures. This capital infusion is aimed at scaling Conduit's payment system and expanding its currency offerings across both fiat and stablecoins.

Conduit's payment system is positioned as a modern alternative to the traditional SWIFT network, which has been the backbone of international wire transfers since the 1970s. By leveraging stablecoins and integrating them with local fiat currencies through crypto infrastructure, Conduit claims to offer near real-time cross-border settlements. This innovation addresses the inefficiencies and high costs associated with traditional cross-border payment systems, which often fail to meet the demands of modern businesses.

Kirill Gertman, CEO of Conduit, emphasized the limitations of traditional cross-border payment systems, stating that they do not adequately meet the needs of contemporary businesses. Conduit's platform aims to bridge this gap by providing a more efficient and cost-effective solution for international transactions. Since its launch in 2021, Conduit's clients have reportedly saved over 60,000 hours in settlement times and more than $55 million in fees, highlighting the platform's potential to disrupt the traditional cross-border payments landscape.

The funding round comes at a time when stablecoins are gaining increased adoption. Stablecoins, which are designed to maintain a stable value by pegging their worth to a reserve of assets, offer a reliable medium of exchange for commercial transactions. This stability makes them particularly suitable for cross-border payments, where price volatility can be a significant concern. Conduit's platform leverages this stability to provide a seamless and cost-effective solution for international transactions, addressing one of the key challenges in the cryptocurrency market.

The growing interest in stablecoin technology is evident from the recent funding rounds of other stablecoin-focused startups. In April, Cap raised $11 million in seed funding, while Plasma secured $24 million in February. Additionally, Cedar Money closed a $9.9 million round in January to support its stablecoin payments platform. These investments underscore the potential of stablecoins to revolutionize the way cross-border payments are conducted, offering a more efficient and cost-effective alternative to traditional banking systems.

Circle, the issuer of USDC and one of Conduit’s backers, is also preparing for a public debut. The company is aiming to raise $624 million through an initial public offering, targeting a valuation of $6.71 billion. This move further highlights the growing interest and investment in stablecoin technology, as companies seek to capitalize on the potential of stablecoins to transform the global economy.

With the $36 million investment, Conduit is well-positioned to expand its reach and further develop its stablecoin-based payment network. The company's focus on stablecoins aligns with the broader trend in the cryptocurrency market towards more stable and reliable digital assets. As the demand for stablecoins continues to grow, Conduit's platform is poised to become a leading player in the cross-border payments space, offering a robust and scalable solution for international transactions.