Higlobe, a US startup founded by a former executive from Google and Spotify, has successfully raised $14 million to develop a subscription-based cross-border money transfer service aimed at freelance workers. This service utilizes stablecoins to facilitate fast money transfers.
The funding round was led by Battery Ventures, a global technology investment firm known for its investments in several US fintech companies.
Initially launching in Mexico, Higlobe aims to save users an average of 1-6% in transaction commissions each month. The platform charges a monthly subscription fee starting at $4.99 for a US receiving bank account, irrespective of the number of transfers made.
“Our mission is to move the world’s money instantly and at no cost to help the increasingly global workforce get more money back to their home bank accounts,” said CEO and Co-founder Teymour H. Farman-Farmaian. Drawing on his experience at Spotify, Farman-Farmaian has built Higlobe as a subscription-based payments platform with a focus on minimizing costs for clients.
Higlobe exclusively employs stablecoins that are issued by companies regulated by US federal or state agencies, ensuring that they are 1:1 backed by US dollars or US government treasury securities.
Scott Tobin from Battery Ventures, who will join Higlobe’s board, commented, “Higlobe’s innovative use of stablecoins has the potential to disrupt the global payments industry. The blockchain offers a secure and quick alternative to an outdated system that disadvantages many workers. By leveraging this new technology, Higlobe can significantly impact the lives of millions in the global remote workforce. We look forward to partnering with Teymour and his team to scale the company and its services.”