Augustus, a startup building a federally chartered clearing bank, said it has raised $180 million in a funding round that values the company at $1 billion. The round was led by Tiger Global Management, with participation from Hummingbird Ventures, QED Investors, and investors including the founders of Nubank, Ramp, Circle, and Deel. The company said the fresh capital will be used to expand its U.S. dollar payments infrastructure as stablecoins reshape the global financial system. While much of the market’s attention has been on stablecoin issuers, Augustus is targeting correspondent banking, a less visible but critical layer of financial plumbing. CEO Ferdinand Dabitz said the bottleneck in financial services distribution sits at the clearing bank level, adding that traditional clearing systems are slow, do not operate around the clock, take two days to settle, and shut down on weekends.
Augustus, a startup building a federally chartered clearing bank, said on July 21 that it has raised $180 million in a funding round that values the company at $1 billion.
The company said it plans to use the capital to expand its U.S. dollar payments infrastructure as stablecoins reshape the global financial system.
Tiger Global Management led the round. Hummingbird Ventures, QED Investors, and investors including the founders of Nubank, Ramp, Circle, and Deel also took part.
Focus on correspondent banking
The fundraising comes as banks, fintech firms, and crypto companies race to upgrade cross-border payments infrastructure. Much of the market’s attention has centered on stablecoin issuers, but Augustus is targeting a less visible yet critical part of the financial system: correspondent banking.
In an interview, Augustus CEO Ferdinand Dabitz said, "We think the bottleneck in the distribution layer of financial services is at the clearing bank level."
He said traditional clearing systems are "slow, unavailable 24/7, take two days to settle, and close on weekends."
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