The latest generation startups aimed at solving payments over the borders focus on stubcoin. Cryptocurrency coins are often used to maintain stable prices by fixing them into actual currency or other products. This trend is increasing the interest of investors in FinTech.
The latest development is Cedar, a US -based US, which has recently closed $ 9.9 million in seed funds led by a global Fintech investor QED investor with the participation from lattice, NIV, Stellar, and Wischoff Ventures. Money.
Cedar Money works as a bridge, as well as a payment platform that crosses many borders using StableCoins. Companies and individuals are traded using FIAT -based sites, and StableCoin transactions are executed in the background. Cedar Money stated that it is planning to expand payment infrastructure and work on international payment inefficient with this fund.
These inefficient are particularly painful in Africa. In Africa, companies are risky and the cost of being involved in local banking is increasing, facing hidden costs for currency conversion. Banks will benefit from the expansion of the exchange rate and add another cost layer. “Looking at Swift Network, the price around the world is about 2-3 %, but in Africa, it is much higher. Founder Bengey Fine Burg told TechCrunch.
Fine Burg established Cedar Money in 2022. Before launching his latest venture, he spent his time in fintech to identify the next “big” opportunity, and eventually focused on payment and blockchain.
StableCoins has a limited USE case, and due to competition with conventional systems such as dollars and swifs, it is struggling to get traction in the United States, but Fine Burg recognizes different reality in the emerging market. Ta.
Africa, Middle East, and South America companies require dollars to pay import fees, even when purchasing from countries like China. In countries such as Nigeria and Argentina, local currency such as Naira and Argentinpesen is weak, so it may be difficult to get dollars.
Cedar Money, which started in early 2024, started a business in Nigeria, supporting domestic companies accepting money to other people around the world. “You want to go to a place where you can solve a big problem, and it's easier to hire. That's why we started in Africa -because the need is the biggest here.” The highest executive officer said.
However, despite its popularity, the StableCoin platform faces restrictions that can affect the whole market size.
Fine Burg explains that when asked, convert Fiat to stubcoin, transfer them, and convert them while building a payment rail, which is not a breakthrough. did. According to him, the place where true difficulties and the excellent money of the Cedar are, built a compliance rail to accommodate the unique regulatory requirements of all countries and extensive banks to secure legitimate transactions. There is to do.
These requirements are especially difficult in Africa -like markets. At first glance, the difference in infrastructure has a simple request, such as providing a street address.
Fine Burg has argued that the winners in this field are those who can operate globally, especially in unprecedented areas, navigating complicated compliance requirements.
“I think the biggest challenge is to educate banks in developing countries that the funds that are not developed world are good. That is the challenge, but we are doing that.”
However, the United States has set a tone of favorable regulations on digital assets that can make compliance easier. Many of the industries in the industry, combined with other events, such as the acquisition of STRECOIN Startup Bridge in Stripe, not only accept StableCoin's payments widely, but also banks and regulatory authorities globally and emerging. In the market, we believe that it will alleviate a strong view on the adoption of StableCoin.
The recruitment has begun to rebuild the global payment situation. The data from A16Z and other sources clearly shows this. In 2017, the amount of StableCoin transactions could be ignored compared to conventional systems. To this time, StableCoins exceeds MasterCard, PayPal, and Visa. According to A16Z reports, the transaction in the second quarter of 2024 reached $ 8.5 trillion for a 50x transaction, compared to $ 3.9 trillion volumes.
Cedar Money, which was established a year ago, processes tens of millions of people in monthly transactions by focusing on imports and export businesses that handle and export businesses supported by Bona Fide Invoices. I will do it. According to Feinberg, Feinberg, who refused to share the client number, is a physical product.
GBENGA AJAYI, a partner of QED INVESTORS, states that Fintech is “unique to work on global financial systems inefficient,” with the reason why the global fintech company invested in Cedar Money. I am.
Payments with 14 staff members in Nigeria, the United States, Israel and Serbia are Monster, Presium, and rescue and hygiene, and the QED investor Africa -centered investment.
Cedar Money is added to the list of players such as CONDUIT and Caliza. It provides services to companies in emerging markets with a payment with StableCoin. However, despite the fact that the relevance has increased, despite the market capitalization of $ 200 billion last year, Fine Burg has a small international payment group share, so at this stage Cedar Money is directly directly. We will not compete.
“Today, two -thirds of international payments are through the bank network of correspondent. The biggest Fiat Ionovator is probably 2-5 % of the market, so we look at this. Two are banks, 5 % of the fiat are stupid, and your future is not always the other player. It's big, so it's only to find your small corner. “