Conduit Secures $36 Million for Blockchain-Based Cross-Border Payments

Conduit, a cross-border payments platform, announced on Wednesday that it has secured $36 million in a Series A funding round. The round was co-led by Dragonfly and Altos Ventures, with additional participation from Sound Ventures, Commerce Ventures, DCG, and Circle Ventures, the investment arm of the issuer of the USDC stablecoin.

The funding will support Conduit's mission to bridge the gap between traditional banking and stablecoin technology, aiming to make international money transfers faster, easier, and more cost-effective. The platform integrates stablecoins, USD, and local currencies, enabling nearly instant global transfers across multiple payment rails. These include USD-denominated payment networks such as SWIFT, ACH, and FedWire, as well as local payment systems in various regions.

Conduit's innovative approach positions it as a key player in the growing trend of blockchain-based cross-border payments. As the global economy increasingly relies on digital payment rails and stablecoins gain traction due to improved regulatory clarity, more institutions and individuals are expected to adopt blockchain-based payment solutions.

Conduit is not alone in this space. Other blockchain-based companies, such as Ripple and Tether, have also been expanding their presence in the cross-border payments sector. Traditional financial institutions like PayPal and Mastercard are also making strides to capture clients interested in using cryptocurrencies for financial transactions.

Conduit's CEO, Kirill Gertman, highlighted the limitations of traditional cross-border payment systems, stating that they do not meet the demands of modern businesses. The company has already made significant strides, saving clients over 60,000 hours in settlement times and generating fee savings worth over $55 million. This has been achieved by combining its blockchain-based infrastructure with traditional finance, while also integrating robust anti-money laundering protocols, sanctions screening, and transaction monitoring.

Dragonfly Capital’s Rob Hadick, who will join Conduit's board as part of the investment, emphasized the company's role as a critical infrastructure provider for the global economy. By addressing the real pain points businesses face with international transactions, particularly in emerging markets, Conduit has positioned itself as a vital player in the evolving landscape of cross-border payments.