▼ Summary
– Shield raised a $5 million seed round led by Giant Ventures, bringing its total funding to $7 million.
– The company enables exporters and importers to conduct cross-border transactions using US cryptocurrencies while providing compliance screenings.
– Shield was founded to address the slow, expensive, and limited access to US dollars in international trade, particularly in regions like Latin America and Africa.
– Since its 2022 launch, Shield has processed over $100 million in payments, with $40 million occurring in the last month.
– The new funding will be used to secure more banking partnerships and enhance its compliance product, including licensing and fraud detection.
Shield, a crypto-focused financial technology company, has secured $5 million in a seed funding round to advance its mission of simplifying global payments for businesses. The investment was spearheaded by Giant Ventures, with notable participation from a16z crypto’s startup accelerator, Factor Capital, and strategic angels from Coinbase and Bank of America. This latest injection brings Shield’s total funding to $7 million, capital the company plans to use for expanding banking partnerships and enhancing its compliance infrastructure.
Founded in 2022, Shield initially explored different avenues before pivoting in 2024 to concentrate exclusively on cross-border payments. The platform enables exporters and importers to conduct international transactions using US dollar-pegged cryptocurrencies. A significant part of its service involves robust compliance screenings designed to mitigate risks related to sanctions and money laundering. Shield is registered as a Money Services Business in the United States and as a virtual asset service provider in the European Union.
The inspiration for the company came from the personal frustrations of its founders. CEO Emmanuel Udotong, who started Shield with his brother Isaiah and friend Luis Carchi, expressed disappointment with the scarcity of practical, legitimate applications for blockchain technology. “We were constantly seeing ‘bad actors’ dominate the crypto narrative,” Udotong explained. Their own challenges in running a trade business highlighted a major pain point: the inefficiency of traditional international wire transfers. “Businesses in regions like Latin America, Africa, and parts of Asia often wait days or even weeks for payments, pay exorbitant fees, and sometimes cannot access US dollars at all,” he noted. This reality leads to limited trade opportunities and can stifle growth.
Shield aims to level the playing field by providing a faster, more accessible payment rail. Since its launch, the company reports having processed over $100 million in transaction volume, with $40 million of that total occurring in just the last month. This growth comes as the broader crypto market experiences a significant resurgence. However, Shield operates in a competitive landscape filled with dozens of other startups and established players like PayPal’s Xoom and Stripe’s recently launched Bridge solution.
The connection with lead investor Giant Ventures was facilitated through a fellow entrepreneur. Looking ahead, Shield intends to use the new funds to secure additional banking partnerships, it currently works with two primary banks, though their names remain confidential. A key focus will be on strengthening its compliance offerings. “Our plans involve expanding our licensing footprint, upgrading systems for transaction monitoring and fraud detection, and growing our team of compliance experts,” Udotong stated.
Ultimately, the leadership team believes that by solving fundamental payment challenges, they can empower businesses in underserved markets. Udotong envisions a future where more companies can not only survive but thrive on a global scale. “Success for us means more businesses creating jobs and generating wealth within their communities, rather than being left behind due to financial infrastructure limitations,” he concluded.
(Source: TechCrunch)
