Cedar Money Raises $9.9 Million for Cross-Border Payment Solution Using Stablecoins

Cedar Money raised $9.9 million in a seed round to support the growth of its payments software that uses stablecoins to facilitate cross-border payments between developed and emerging markets.

The company’s platform aims to address the challenges of the correspondent banking network and has been especially effective in regions where traditional payments systems are “cumbersome, costly or inaccessible,” the company said in a Thursday (Jan. 30) press release.

“The funding underscores the urgency for innovative payment solutions in a world where businesses face significant barriers in moving money across borders,” Cedar Money CEO Benjy Feinberg said in the release.

Cedar Money’s platform features blockchain technology on the back end together with a fiat-based interface, according to the release.

The company’s seed round was led by QED Investors, per the release.

“By leveraging stablecoin technology while maintaining a fully compliant and fiat-aligned user experience, Cedar Money is uniquely positioned to tackle the inefficiencies of the global financial system,” QED Investors Partner Gbenga Ajayi said in the release.

The cross-border payments industry is an area in which stablecoins have shown signs of transitioning from speculative tools to potentially foundational elements of global finance, PYMNTS reported in December.

While challenges remain, there is potential for stablecoins to drive greater efficiency, inclusivity and transparency in financial services.

Payroll/HR platform Remote said in December that its clients can now pay contract workers using stablecoins, initially allowing businesses in the United States to pay contractors in 69 countries with the USDC stablecoin.

“With the introduction of stablecoin payouts via Stripe, we’re adding a feature that has been highly requested by our customers, enabling them to pay contractors how they prefer, while maintaining the compliance and simplicity Remote is known for,” Remote CEO and co-founder Job van der Voort said at the time.

PayPal said in November that it would begin letting its disbursement partners use its stablecoin, PayPal USD, to settle cross-border money transfers, adding that this service would be offered through its cross-border payments business, Xoom.