Augustus raises $180m at $1bn to build stablecoin clearing bank
Augustus secured $180 million at a $1 billion valuation to build a federally chartered clearing bank that replaces legacy correspondent banking with always-on stablecoin infrastructure.
Augustus raised $180 million in a funding round led by Tiger Global, reaching a $1 billion valuation. The startup is building a federally chartered clearing bank designed to connect traditional payment systems with blockchain networks. Investors in the round included Hummingbird, QED, and the founders of Nubank, Ramp, Circle, and Deel.
Rather than competing with stablecoin issuers, Augustus is targeting the correspondent banking layer. CEO Ferdinand Dabitz identified this as the breaking point in global finance distribution. “We think distribution breaks at the clearing bank layer,” Dabitz said, arguing that legacy infrastructure is “slow, unavailable, take two days to settle and close on the weekends.”
The company provides the underlying plumbing that lets financial institutions move money across traditional rails and blockchain networks. Augustus built its platform from scratch rather than relying on legacy banking software, enabling programmable payments and continuous settlement. Dabitz projected a rapid industry shift, stating that “in 10 years from now all clearing banks will offer stablecoin rails like they offer Fedwire.”
Operations are already underway in Europe. Through a regulated entity in Finland, Augustus clears euros and processes billions of euros annually for global financial institutions, including the crypto exchange Kraken. The startup is now awaiting final approval from the Office of the Comptroller of the Currency for a U.S. national bank charter, having received conditional approval in May.
For institutional investors and corporate treasurers, this infrastructure addresses a major capital inefficiency. Augustus estimates that trillions of dollars are currently locked in dormant balances across correspondent accounts worldwide. Always-on stablecoin rails would allow institutions to move liquidity instantly across global markets, eliminating the need to hold idle capital to facilitate cross-border transactions.
The fresh funding will finance a geographic expansion into Latin America, Southeast Asia, the Middle East, and Africa, regions where access to U.S. dollar banking infrastructure remains limited. Dabitz also positioned the bank’s programmable capabilities as essential for automated finance. “If AI agents should interact with the bank in a meaningful way, they will need programmable money,” he said.
