Shield Raises $5 Million to Grow Neobank for Exporters

Shield raised $5 million in seed funding to continue building its neobank for global trade businesses.

The company helps exporters accept payments from international buyers in USDT stablecoins and settle them as same-day U.S. dollar wires, it said in a Monday (Sept. 22) blog post.

“Businesses get the speed and cost savings of blockchain payments without the constant fear of account closures and unwarranted delays,” the post said. “It also enables them to trade in entirely new markets.”

Shield processed over $150 million in cross-border payments in its first year and $40 million in the last month alone, according to the post.

With its new funding, the company will expand its licensing coverage, strengthen compliance, launch “USDT-friendly” bank accounts and other banking products, and enter new trade industries, the post said.

“We see a world where global trade payments are as fast as domestic wires, where compliance opens doors rather than closes them, and where exporters from every corner of the world can enjoy a banking and payments experience that finally optimizes for them,” Shield said in the post. “Shield will build the infrastructure to make it happen—and this raise is just the start.”

Shield’s banking services are provided by Cross River Bank and Lead Bank through licensed partners, according to the post.

The company’s seed round was led by Giant Ventures, with participation from a16z crypto, Factor Capital and others, per the release.

In a Monday post on LinkedIn, Giant Ventures said that Shield is “the world’s first stablecoin-powered neobank for global trade” and that it “removes needless barriers for exporters and wholesalers.”

“With Shield, businesses can move seamlessly between stablecoins and U.S. dollars—with all the safeguards of a regulated financial institution—empowering entrepreneurs from underserved regions to trade and grow without friction,” Giant Ventures said in its post.

PYMNTS reported Sept. 15 that stablecoins are now embedded in cross-border settlements, decentralized finance and remittance corridors.

Stablecoins offer instant settlement across time zones, low fees compared with correspondent banking, and programmable features that allow treasury desks to automate flows.

MoneyGram announced Wednesday (Sept. 17) that it plans to launch a new stablecoin-based solution for cross-border finance in Colombia and then expand it to additional markets.