Higlobe, a US startup founded by a former Google and Spotify executive, has raised $14 million to launch a subscription-based cross-border money transfer service for freelance workers, using stablecoins to transfer money quickly.
The funding round was led by global technology investment firm Battery Ventures, an investor in a number of US-based fintech companies.
The service, which claims to saves users on average 1-6% in transaction commissions per month, is launching initially in Mexico. Higlobe charges a monthly subscription fee as low as $4.99 for a US receiving bank account, regardless 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 account,” saiys CEO and Co-founder Teymour H. Farman-Farmaian, who leveraged his experience at Spotify to build Higlobe as a subscription-based payments platform. “Our clients only pay a fixed, low-cost subscription for a US receiving bank account regardless of the number of transfers they make.”
Higlobe exclusively uses stablecoins issued by companies that are regulated and supervised by US federal or state agencies and that are 1:1 backed by US dollars or US government treasury securities.
“Higlobe’s unique application of stablecoin is poised to disrupt the global payments industry,” says Battery’s Scott Tobin, who is joining Higlobe's board. “The blockchain provides a safe and speedy solution to an archaic system that disadvantages so many workers, and by leveraging this new technology, Higlobe can change the lives of millions of members of the global remote workforce. We are excited to partner with Teymour and his team to scale the company and its services."