In a growing trend of fintech advancements, Cedar Money, a U.S.-based startup, spearheads stablecoin payment solutions. The startup has successfully landed $9.9 million in seed funding led by QED Investors – a global fintech powerhouse, with participation from Lattice, NIV, Stellar and Wischoff Ventures.
Stablecoin outlets like Cedar Money offer a lifeline for businesses and individuals navigating transaction hurdles. The company uses the platform as a transfer gateway allowing transacting via a fiat-based site, with underlying stablecoin transactions operating in parallel.
Utilizing the gathered funds, Cedar Money intends to expand its payment structure to address the challenges in international payments. Currently, these issues are significant in Africa, an area plagued with steep transaction fees and costs concealed within currency conversions – all feeding off local banking complications.
Benjy Feinberg, Founder, and CEO of Cedar Money identified the potential of blockchain and payments in fintech, resulting in the creation of Cedar Money in 2022. Despite the competition from established systems like SWIFT and the dollar, Feinberg perceived an untapped market within emerging economies.
As the demand for dollar payments across Africa, the Middle East, and South America remains high, gaining access to dollars becomes problematic due to weak regional currencies. Here, Cedar Money provides a significant solution, demonstrating its initial successes in Nigeria.
Notwithstanding the platform’s progressive adoption, limitations lie ahead for Cedar Money and similar platforms wanting to scale across diverse markets. The major hurdle is tailoring the platforms to fit the unique regulatory structures for each country while ensuring the execution of legitimate transactions.
Feinberg is convinced that the trailblazers in this sphere will be companies that can scale operations worldwide, meeting diverse, complex compliance requirements effectively in underserved areas.
The U.S. demonstrates a growing supportive climate towards digital assets, fostering more accessible compliance. With events such as Stripe’s acquisition of stablecoin startup Bridge, a broader embrace of stablecoin payments is anticipated, potentially causing regulators and banks worldwide to reconsider their stance, particularly in emerging markets.
Cedar Money has made notable inroads within a year, transacting millions monthly by primarily assisting in import/export transactions concerning tangible goods, clarifying the notorious underwriting process for banking institutions.
With its newly acquired funding, Cedar Money is poised to attack global financial system inefficiencies, with a unique advantage in the burgeoning stablecoin international payment landscape.
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