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Sphere raises USD 5 million in funding to expand stablecoin payments

Friday 13 December 2024 14:32 CET | News

Stablecoin-focused payments company Sphere has secured USD 5 million in a funding round led by Coinbase Ventures and Kraken Ventures.

 

Founded in 2022, Sphere aims to streamline cross-border payments by leveraging stablecoins. In essence, Sphere's platform connects global fintech companies and licenced money transfer operators, enabling businesses to move funds internationally using stablecoins.  

Once the funds reach their destination, Sphere partners with local banks to facilitate conversion into local currencies. This approach is designed to provide a faster, more efficient alternative to traditional cross-border payment methods. 

Describing the company’s approach, one of the company’s co-founders explained that the conventional process for transferring money internationally can be cumbersome. He also highlighted the company’s goal to simplify the transfer of funds and associated data between businesses and regulated entities across countries. 

Sphere has also developed an application programming interface (API) that facilitates global payment routing by linking businesses and financial institutions. The API supports settlements with banks, typically completing transactions within 15 to 30 minutes while adhering to local regulatory requirements. 

The funding will be directed toward enhancing Sphere’s regulatory compliance and risk management capabilities. By prioritising these areas, Sphere aims to ensure the stability and reliability of its platform as it expands its operations in the international payments space.

 

Stablecoin-focused payments company Sphere has secured USD 5 million in a funding round led by Coinbase Ventures and Kraken Ventures.

 

The trajectory of stablecoins 

According to Chainalysis, stablecoins have emerged as a significant force in the global cryptocurrency market, now accounting for over two-thirds of recent cryptocurrency transaction volumes. Unlike traditional cryptocurrencies, which often experience substantial price volatility, stablecoins maintain a stable value by being pegged to less volatile assets such as fiat currencies or commodities. 

The same source reveals that globally, stablecoins are being used increasingly as both a medium of exchange and a store of value, particularly in regions with unstable monetary systems or limited access to the USD. Their applications range from cross-border payments and liquidity management to hedging against currency fluctuations. For businesses, financial institutions, and individuals, stablecoins offer faster and more cost-efficient transaction options compared to conventional financial systems, contributing to their growing appeal worldwide.


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Keywords: cryptocurrency, fintech, stablecoin, funding
Categories: DeFi & Crypto & Web3
Companies: Sphere
Countries: World
This article is part of category

DeFi & Crypto & Web3

Sphere

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