Stablecoins Hit the Street and FinTech Funding Targets Lending Platforms

The most visible sign this week of enthusiasm for FinTechs — call it a form of financial enthusiasm, perhaps — was, arguably, the stratospheric rise of Circle shares in their debut on the public markets on Thursday (June 5).

Circle shares soared from the initial offering price, we wrote in coverage of a remarkable first day that ended with a 168% gain. Beyond the eye-popping share price gains, it’s important to note that funding of this sort, on exchanges via direct listing, represents affirmation of the continued digital shifts in payments.

The stablecoin landscape is in flux, at least in terms of regulations, and as we wrote, with quarterly Securities and Exchange Commission (SEC) filings on the horizon, those documents can and will offer “increased transparency into Circle’s operations, governance and financials, which may set a new industry standard.”

Circle, for its part, has been acting as an investor in the space as well. Stablecoin-focused cross-border payments platform Conduit raised $36 million in new funding. The Series A round included participation from the venture investment arm of Circle. Conduit’s cross-border payment network integrates stablecoins, USD and local currencies, providing businesses what the FinTech company says is a faster, cheaper and more reliable alternative to the legacy Swift system. Conduit has said it is connected to multiple local banks in North America, Latin America, Europe, Africa and Asia, and the funding will be used in part to support a wider range of traditional and digital currencies through its real-time payment rails.

From Platforms to B2B

There are other signs of investors putting their dollars to work (while reaping some rewards via equity stakes, of course) to help hasten the tech-driven transformation of money movement. Recent funding rounds have touched on everything from infrastructure to B2B to platform-based lending.

PYMNTS reported this week that OatFi raised $24 million in a Series A round to build a B2B credit network. The round was led by White Star Capital, OatFi said. Through APIs, OatFi embeds its underwriting, origination and funding capabilities into B2B payment platforms within their accounts payable (AP), accounts receivable (AR) and commercial charge card workflows, which the FinTech firm said “facilitates B2B transactions with built-in financing at the point where it’s needed most.” The total addressable market is about $35 trillion annually, OatFi said.

Separately, VOX Funding secured a $150 million credit facility from Raven Capital to continue expanding its flexible financing options for U.S. businesses. VOX provides working capital solutions to businesses across the U.S., has funded over $750 million through its platform since its founding in 2018, it said in announcing the new credit facility.

Banxware, which is based in Germany and also focuses on lending, has received an investment of 10 million euros from UniCredit. The FinTech firm offers embedded lending solutions for smaller businesses. According to the release detailing the investment, Banxware has also struck up a partnership with UniCredit’s newly acquired BaaS platform Aion and Vodeno.

“This dual development marks Banxware’s transition from a traditional structured finance model to a capital-light, highly scalable forward flow setup—unlocking the full potential of embedded SME lending across Europe and beyond,” the companies said. Banxware is currently embedded in over 40 digital platforms.