Conduit raises $36M for stablecoin, fiat cross-border payment network

Conduit, a Boston-based cross-border payments company, secured $36 million in Series A funding, led by Dragonfly and Altos Ventures. This investment will fuel the expansion of Conduit’s payment system and broaden its currency offerings to encompass both fiat currencies and stablecoins.

Conduit positions itself as a modern alternative to SWIFT, the decades-old messaging network used for international wire transfers. The company leverages stablecoins and local fiat currencies within a crypto infrastructure to facilitate near real-time cross-border settlements. According to CEO Kirill Gertman, traditional systems fail to meet the demands of contemporary businesses.

The funding round also included participation from Sound Ventures, Commerce Ventures, DCG, Circle Ventures, Helios Digital Ventures, and Portage Ventures. Conduit boasts significant cost and time savings for its clients since its 2021 launch, claiming reductions exceeding 60,000 hours in settlement times and over $55 million in fees.

This investment highlights the growing interest in stablecoin-focused ventures. The stablecoin market capitalization surged to $247 billion on May 28, reflecting a 54% increase over the past year, according to DefiLlama. This growth is mirrored by Tether’s USDT, which continues to expand alongside the overall stablecoin market.

The recent funding round for Conduit follows a trend of significant investments in the stablecoin sector. Cap raised $11 million in April, Plasma secured $24 million in February, and Cedar Money closed a $9.9 million round in January, all focused on stablecoin payments platforms.

Further emphasizing the sector’s momentum, Circle, a backer of Conduit and issuer of USDC, is preparing for a public offering aiming to raise $624 million, valuing the company at $6.71 billion. This IPO underscores the significant investment and growing confidence in the stablecoin and broader crypto payment infrastructure markets. The confluence of factors — increased stablecoin adoption, substantial funding rounds, and a major player’s impending IPO — suggests a maturing and increasingly significant role for stablecoins in the global financial system.