Cedar Money, a fintech startup utilising stablecoins for cross-border payments, has announced a $9.9 million seed funding round. The investment was led by QED Investors, with participation from North Island Ventures, Wischoff Ventures, Lattice, and Stellar.
The funding will fuel Cedar Money’s efforts to transform international money transfers, addressing the persistent challenges of slow settlement times and complex regulatory hurdles. The company focuses on facilitating payments between emerging and developing markets, targeting opportunities in remittances and international trade.
“This funding underscores the urgent need for innovative payment solutions,” said Benjy Feinberg, CEO of Cedar Money in a statement. “We’re partnering with investors like QED who share our vision for a truly global and inclusive financial ecosystem.”
Cedar Money’s approach leverages stablecoins to move funds while navigating the intricate compliance landscapes of various countries.
Feinberg emphasised the difficulty of building compliant infrastructure that meets each nation’s specific regulatory requirements and banks’ due diligence processes, particularly in markets like Africa where infrastructural challenges can complicate even basic requirements.
Gbenga Ajayi, partner at QED Investors, commented, “By leveraging stablecoin technology while maintaining a fully compliant and fiat-aligned user experience, Cedar Money is uniquely positioned to tackle the inefficiencies of the global financial system. We’re thrilled to support their journey.”
Despite a slight dip in 2022, remittances to Sub-Saharan Africa remain significant. Nigeria, the largest recipient in the region, saw $19.5 billion in inflows last year, representing 35% of the total for the region, according to the World Bank.
Cedar Money aims to capitalise on this substantial market by offering businesses a more seamless and compliant payment solution.
