Conduit, a cross-border payments company based in Boston, has raised $36 million in a Series A funding round led by Dragonfly and Altos Ventures. The capital will go to scale its payment system and expand currency offerings across fiat and stablecoins.

Conduit markets its payment system as an alternative to the messaging network SWIFT, or Society for Worldwide Interbank Financial Telecommunications. Banks have relied on the SWIFT protocol to process wire transfers since the 1970s.

Conduit claims its platform offers a modern alternative, enabling near real-time cross-border settlements by combining stablecoins with local fiat currencies through crypto infrastructure.

“Traditional cross-border payment systems do not meet the demands of modern businesses,” Kirill Gertman, Conduit CEO, said in a statement.

Additional participants in the funding round include Sound Ventures, Commerce Ventures, DCG, Circle Ventures, and two previous investors, Helios Digital Ventures and Portage Ventures. Conduit claims its clients have saved more than 60,000 hours in settlement times and over $55 million in fees since launching in 2021.

Related: UK FCA requests public comments on stablecoin, crypto custody regulation

Funding for stablecoin companies increases

Stablecoins are seeing increased adoption. According to DefiLlama data, the market capitalization of stablecoins reached $247 billion on May 28, a steep rise from $161 billion a year before. Over the past 12 months, the market cap has jumped 54%.

Tether’s USDT is keeping pace with growing stablecoin markets. Source: DefiLlama

Investors continue to bet on stablecoin-focused startups. In April, stablecoin firm Cap raised $11 million in seed funding, while Plasma secured $24 million in February. Startup Cedar Money also closed a $9.9 million round in January to support its stablecoin payments platform.

Circle, the issuer of USDC and one of Conduit’s backers, is preparing for a public debut. The company is aiming to raise $624 million through an initial public offering, targeting a valuation of $6.71 billion, according to its IPO filings.

Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

BlackRock is reportedly planning to take a significant stake in Circle’s upcoming initial public offering (IPO).According to a May 28 Bloomberg report citing anonymous sources, BlackRock is looking to purchase roughly 10% of the offering. Circle, the issuer of the USDC stablecoin, is aiming to raise $624 million in its initial public offering

Cathie Wood’s Ark Investment Management is also interested in buying $150 million worth of shares in the offering. Circle launched its offering of 24 million shares of Class A common stock on May 27. The offering consists of shares from the company as well as shares of existing stakeholders, including co-founder and CEO Jeremy Allaire.

This is a developing story, and further information will be added as it becomes available.

BlackRock is reportedly planning to take a significant stake in Circle’s upcoming initial public offering (IPO).

According to a May 28 Bloomberg report citing anonymous sources, BlackRock is looking to purchase roughly 10% of the offering. Circle, the issuer of the USDC stablecoin, is aiming to raise $624 million in its initial public offering

Cathie Wood’s Ark Investment Management is also interested in buying $150 million worth of shares in the offering, the report said. 

Circle launched its offering of 24 million shares of Class A common stock on May 27. The offering consists of shares from the company as well as shares of existing stakeholders, including co-founder and CEO Jeremy Allaire. According to the report, Circle’s IPO has now received orders for multiple times the shares available.

The company filed for an initial public offering on April 1, but delayed plans citing economic uncertainty. Crypto firms Ripple and Coinbase were reportedly exploring a potential acquisition of Circle. The company has since dismissed the speculation, saying it “is not for sale.”

Related: Circle co-founder to create ‘AI-native’ bank after $18M raise

USDC market share

With a market capitalization of $60.9 billion as of May 28, Circle’s USDC (USDC) represents 24.6% of the stablecoin market, only behind Tether’s USDt (USDT).

Stablecoins by market cap. Source: DefiLlama

According to its Form S-1 registration statement, Circle had $1.67 billion in revenue in 2024, representing a 16% increase year-over-year. However, its net income fell from $267.6 million in 2023 to $155.7 million in 2024, a 41.8% decline.

Circle’s main competitor, Tether, is seemingly not interested in pursuing an IPO. In an X post on April 4, Tether CEO Paolo Ardoino said that “Tether doesn’t need to go public.”

Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight