Posted In:

Payments, Russia, SWIFT, Banking


#426
SWIFT Resolution

Published:

Feb 26, 2022


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Posted In:

Payments, Russia, SWIFT, Banking

Published:

Feb 26, 2022


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As the shockwaves of the Russian invasion of Ukraine have reverberated throughout the world, companies involved in the international flows of funds have reacted swiftly…aside from SWIFT itself.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a core component of the communications infrastructure powering connectivity among financial institutions in more than 200 countries, and is often considered one of the most extreme levers when invoking sanctions. Case in point: in 2012 Iran became only the second country behind North Korea to be cut off.

Despite the potential to generate a more powerful blow to Russia than targeted sanctions, the repercussions of cutting off SWIFT would be far-reaching, threatening to harm Western countries and companies with high exposure to Russian industries. Perhaps the most concerning ramification, however, could be an erosion of the dollar-dominated global financial system.

While the G7 weighs the pros and cons of their next move, other cross border focused fintech companies have taken an overwhelmingly cautious approach towards not only Russia, but also Ukraine. Fintech money transfer business, Wise (FKA TransferWise), capped transfers to both countries at $224, while Brex halted all cash and card transactions to or from Ukraine. These moves come on the back of an order by the National Bank of Ukraine to suspend e-money issuance, distribution, and replenishment.

With dwindling options for individuals, businesses, and (potentially) governments to move money internationally, crypto has taken center stage.

This is first and foremost a humanitarian crisis, but this dilemma also highlights the importance of access to the world’s financial rails. Here’s hoping for a swift resolution all around.

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SWIFT Resolution


What is Swift and could it be used in sanctions against Russia? - Russia’s assault on Ukraine triggered a surge of calls for Western allies to completely sever Russia from the global financial system by disconnecting it from the so-called Swift global payment system. Fear in places like the U.S. and Germany of potential collateral damage have put the idea on hold for now. Read more

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Ukrainian central bank suspends electronic cash transfers, bolstering the use case for crypto - Ukraine’s central bank is cracking down on digital money transfers in one of the latest measures implemented in connection with a nationwide declaration of martial law. And as Ukraine cracks down on pathways to cash and Moscow unleashes airstrikes and ground troops, some Ukrainians are instead turning to cryptocurrencies. Read more

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Select Financings


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Amber Group - Singapore based crypto trading platform raised $200m in Series B funding led by Temasek. Read more

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HUBUC - Barcelona based embedded finance startup raised $10m in Seed funding led by WndrCo and Runa Capital. Read more

Jambo - Congo based web3 banking app for the African continent raised $7.5m in Seed funding led by Coinbase Ventures. Read more

MarketForce - Kenya based retail B2B marketplace raised $40m in Series A funding led by V8 Capital Partners. Read more

Monite - Berlin based embedded finance platform raised $5m in Seed funding led by Point72 Ventures. Read more

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Niyo - India based neobank raised $100m in Series C funding led by Accel and Lightrock India. Read more

OCR Labs - London based digital ID verification startup raised $30m in Series B funding led by Equable Capital. Read more

PayMongo - Philippines based payments company raised $31m in Series B funding led by JAM Fund. Read more

Pontera - New York based retirement account management platform for financial advisors raised $80m in growth funding led by Lightspeed Venture Partners. Read more

PrimaryBid - U.K. based IPO investment startup raised $190m in Series C funding led by SoftBank Vision Fund 2. Read more

Promise - California based platform for consumers to pay government debt raised $25m in Series B funding led by The General Partnership. Read more

Propelld - India based education-focused fintech platform raised $35m in Series B funding led by WestBridge Capital. Read more

Savvy - Mumbai based wealth management software company raised $7.3m in Seed funding led by Index Ventures and Thrive Capital. Read more

Scalapay - Italy based buy-now, pay-later provider raised $213m in Series B funding led by Tencent and Willoughby Capital. Read more

Siteline - San Francisco based maker of billing tools for trade contractors raised $18.4m in Seed and Series A funding led by Menlo Ventures, and Brick & Mortar Ventures and First Round Capital, respectively. Read more

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Zebec - San Francisco based Solana-based protocol raised $15m in Series A funding led by Solana Ventures and Distributed Global. Read more


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