What to know:
- Augustus raises $180 million, securing a new $1 billion valuation in its Series B round.
- New capital will expand US dollar clearing services across key emerging global markets.
- Augustus plans to connect banking rails with stablecoins after conditional OCC approval.
Augustus funding reached $180 million in a Series B round announced on Tuesday. The deal valued the financial infrastructure startup at $1 billion. Tiger Global led the investment, while Hummingbird, QED, and founders of several fintech companies also joined the round.
The new Augustus funding will support the company’s plan to expand dollar payment services for international banks and fintech firms.
Augustus will focus on Latin America, Southeast Asia, the Middle East, and Africa. Financial institutions in those markets rely on indirect access to US dollar accounts and payment rails.
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How Augustus Funding Supports Its US Clearing Bank Plan
Augustus is setting up a clearing bank for financial institutions. It features a platform that bridges traditional payment rails with stablecoin rails and smart settlement services.
The company plans to lower reliance on the levels of correspondent banks, whose work may delay payments and cause institutions to maintain liquidity in multiple accounts. Augustus funding comes after conditional approval of the US national bank charter in May.
The Office of the Comptroller of the Currency gave approval to Augustus’ application for the national bank charter of Augustus National Bank. The company still has to satisfy the conditions set by the regulator before opening the proposed bank.
Augustus does not plan to launch its own stablecoin, according to Ferdinand Dabitz, the CEO of Augustus. Instead, it will offer regulated infrastructure for moving money between banks and blockchain.
The business model focuses on the clearing layer for global payments, as opposed to competition against companies issuing digital coins.
Why Augustus Is Expanding Marble and AI Services
According to the company, Augustus funding will boost its proprietary core banking platform, Marble. The software allows clients to use operating accounts, FBO accounts, and named virtual accounts. Payments may be sent using SWIFT, ACH, SEPA, and stablecoins through the same infrastructure.
Augustus already processes billions of dollars for financial institutions, including cryptocurrency exchange Kraken. Its regulated European business provides euro payment services to customers worldwide.
According to the company, the technology allows faster settlement and 24/7 availability, in addition to the connection between traditional banking and new blockchain-based payment systems.
Augustus funding will be used to further develop the use of artificial intelligence on the platform. The firm uses AI technology across back-office banking functions on the company’s proprietary platform.
The management believes that the technology can make the processes more efficient since the platform is developed from scratch rather than integrated into legacy core banking systems.
What Comes Next for Augustus
According to Dabitz, rails for stablecoins should eventually become an obligatory part of the offering at clearing banks.
He gave the analogy with systems like Fedwire, adding that stablecoins may facilitate the process of liquidity movement between markets by eliminating the necessity to hold significant balances in correspondent bank accounts.
The most recent funding round increases the total capital raised by Augustus to $210 million. The company was founded in 2022 by Ferdinand Dabitz, Joshua Becker, Simon Wimmer, and Peter Lieck.
The company plans to satisfy the requirements of OCC and further increase accessibility for customers in target regions, including building direct US dollar clearing capacity.
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