Yellow Card raises $40 million to link banks to stablecoin processing
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Yellow Card raised $40 million in strategic equity funding to expand its stablecoin payment infrastructure, bringing its total equity financing above $120 million. The company is collaborating with commercial banks worldwide to use stablecoins and onchain payments for cross-border dollar transfers, aiming to compete with legacy systems like Swift.
Why it matters
This development could accelerate the adoption of blockchain technology by banks to move dollars across borders more efficiently. Yellow Card's approach of enabling direct onchain payments between banks without intermediaries could challenge existing payment infrastructures and improve payment flows in emerging markets.
Key context
Yellow Card, founded in 2016 by Chris Maurice and Justin Poiroux, initially focused on African markets with operations adapted to fragmented regulatory environments. It offers Global USD Accounts, allowing businesses to hold dollars, swap stablecoins, and manage treasury operations across 50+ countries. Swift, the traditional interbank messaging system Yellow Card seeks to rival, processes over 53 million instructions daily but is only beginning blockchain experiments.
Key numbers and entities
Yellow Card raised $40 million in its latest round, increasing total equity financing beyond $120 million. Its valuation is higher than the $200 million mark of 2022 but below $1 billion, according to an unnamed source. Investors include SC Ventures (Standard Chartered’s venture arm), Sony Innovation Fund, Polychain Capital, and Blockchain Capital. The company operates in 22 jurisdictions and has facilitated over $10 billion in transactions.
What remains unclear
Yellow Card’s CEO and PR team have not publicly confirmed the company’s valuation. The specific details about the timeline and scope of expanded stablecoin and local payment options in Latin America and Asia-Pacific are not provided. The source does not flag other open questions.