Latitude Raises $35 Million for Stablecoin Local Payments

Texas-based global payments infrastructure company Latitude announced on Wednesday, November 15, 2023, that it has raised $35 million in a Series A funding round. The company aims to bridge the gap between stablecoins and local payment methods, particularly for users in emerging markets. Latitude provides businesses with the infrastructure to convert stablecoins into local currencies and disburse them through familiar channels such as bank accounts and mobile wallets. This Series A round was led by venture and growth equity firm Oak HC/FT, with participation from NEA, Coinbase, Lightspeed Faction, and OpenFX. This funding follows a previous $8 million seed round raised by Latitude. The startup was cofounded by Cyril Mathew, Brian Wrightson, and Vivek Morzaria, who bring extensive experience from companies including Stripe, Uber, Coinbase, and Meta. Cyril Mathew, who serves as the CEO, stated that Latitude enables neobanks and other financial services apps to offer seamless in-and-out access to stablecoins for their global user base, rather than requiring each neobank to build this capability in numerous countries. Beyond neobanks, Latitude's client base includes payroll platforms, marketplaces, and financial firms that require cross-border money movement solutions. The company plans to expand its operations beyond the United States by securing regulatory licenses in Southeast Asia, Latin America, and Africa, regions where many stablecoin companies have not yet established a significant presence. CEO Cyril Mathew's motivation for focusing on cross-border payments stems from his decade-long tenure at Uber, where he led international payments. A formative experience involved an Uber driver in London who was remitting wages to Morocco, relying on a middleman who charged a 20% fee. This experience highlighted the inefficiencies and high costs associated with traditional remittance methods, particularly for individuals in emerging economies. Latitude's solution seeks to offer a more efficient and cost-effective alternative by leveraging stablecoin technology for local payouts. The company's focus on enabling stablecoin utility for everyday transactions in local currencies addresses a critical bottleneck in the broader adoption of digital assets for remittances and payments in underserved markets.