Dragonfly co-leads $36 million Series A in cross-border payment startup Conduit

Cross-border payments platform Conduit said on Wednesday it has raised $36 million in a Series A funding round co-led by Dragonfly and Altos Ventures.

The startup aims to bridge the "gap between traditional banking and stablecoin technology" in order to make it faster, easier, and cheaper to transfer money across international borders, according to a statement . Sound Ventures, Commerce Ventures, DCG, and Circle Ventures, which is the investment arm of the issuer of the USDC stablecoin, also participated in the round.

"Conduit’s cross-border payment network seamlessly integrates stablecoins, USD and local currencies," the company said in its statement, adding that its platform "enables nearly instant global transfers across multiple payment rails, including USD-denominated payment networks (SWIFT, ACH, FedWire) and local payment systems throughout Europe, the UK, and countries such as China, Hong Kong, Mexico, Brazil, Colombia, Nigeria, and Kenya, among others."

The startup is one of many other blockchain-based companies seeking to become a trusted name in cross-border payments as the global economy increasingly relies on digital payment rails and stablecoins gain popularity amid improved regulatory clarity. More institutions and individuals around the globe are expected to rely on internationally accessible, blockchain-based payment rails in the coming years.

During the last several months, both crypto-native firms like Ripple and Tether have made moves to grow their exposure to the cross-border payments sector, while traditional firms such as PayPal and Mastercard also attempt to capture clients eager to complete financial transactions using cryptocurrencies.

"Traditional cross-border payment systems do not meet the demands of modern businesses," Conduit CEO Kirill Gertman said in the release.

To date, Conduit said it "has saved clients over 60,000 hours in settlement times and generated fee savings worth over $55 million." The company also said it has achieved this by blending its own blockchain-based infrastructure with traditional finance while integrating anti-money laundering protocols, "sanctions screening, and transaction monitoring."

"By addressing the real pain points businesses face with international transactions, particularly in emerging markets, Conduit has positioned itself as a critical infrastructure provider for the global economy," said Dragonfly Capital’s Rob Hadick, who will join Conduit's board as part of the investment.