Shield, a neobank startup that leverages stablecoin payments to simplify global trade transactions, has successfully secured $5 million in seed funding.
The funding round was led by Giant Ventures, with contributions from a16z crypto CSX, Factor Capital, and strategic investors from Bank of America, Coinbase, Amex, and Menlo Ventures.
Founded in 2022, Shield pivoted to payment solutions in 2024 after its founders, who had their own “gruelling” experiences as exporters, recognized that these challenges could be improved through stablecoins.
The company now enables exporters to accept stablecoin payments (USDT) from international buyers, settling them as same-day USD transfers. Additionally, it employs AI to ensure robust compliance screenings that cater to legitimate exporters while still identifying potential risks.
In its inaugural year, Shield processed over $150 million in cross-border payments, including $40 million in just the last month, facilitating transactions for businesses dealing in tangible goods.
With the newly acquired funding, Shield aims to expand its licensing coverage, enhance compliance measures, enter new trade sectors, and introduce USDT-friendly bank accounts, though it operates through partners Cross River Bank and Lead Bank rather than being a bank itself.
The team envisions a future where global trade payments are as swift as domestic wires, where compliance fosters rather than hinders opportunities, and where exporters from all corners of the world can access a banking and payments experience tailored to their needs.