After securing tens of millions in funding, how does Sling, led by USV, profit from stablecoin cross-border transfers?
Sling focuses on cross-border fund transfers, aiming to enable low-cost remittances to almost anyone in the world through Solana. Users simply need to search for the recipient's name, enter the transfer amount, and it will automatically convert to the local currency.Author: 1912212.eth, Foresight News
The cryptocurrency market is sluggish and has been in a long-term downturn, leading to numerous voices questioning the excessive infrastructure construction in the market. There are many protocol layers, but truly valuable applications that solve problems are few and far between. Perhaps stablecoins are one of the underestimated applications.
In the various narratives surrounding stablecoins in the crypto market, they seem somewhat uninteresting. There are no price fluctuations, and no one becomes wealthy because of them; only during black swan events in the market do we see panic and discussions about stablecoin decoupling.
Stablecoins bridge the gap between the traditional world and the crypto world, facilitating the flow of countless funds and making mutual benefits possible. For the crypto world, the growth of stablecoins also witnesses the rapid development of the market.
Recently, the stablecoin payment platform Sling Money completed a $15 million Series A funding round, led by Union Square Ventures, with participation from Ribbit Capital and Slow Ventures. How did Sling secure funding during such a generally sluggish market?
Focus on Cross-Border Transfers
Sling focuses on cross-border fund transfers, aiming to enable remittances to almost anyone in the world at a very low cost, without having to consider banking infrastructure. Initially, it primarily used USDC on Solana as the payment tool and medium for transfers, but later, for operational and cost considerations, Sling switched to the stablecoin USDP, which is a digital dollar under the Paxos Trust Company in the U.S. and regulated by the New York Department of Financial Services. Notably, the official introduction states that in certain future scenarios, users holding the stablecoin USDP will earn returns.
The Sling wallet is self-custodial, with ownership of funds and private keys fully belonging to the users.
Sling has launched its app for both iOS and Android, allowing users to simply search for the recipient's name, enter the transfer amount, which is then automatically converted to the local currency, enabling users worldwide to receive funds in a short time.
Currently, the official statement indicates that transfers are free, but there are plans to charge fees in the future, with specific plans to be disclosed later.
Streamlined Process
After downloading and registering on the app, senders need to bind their debit cards to the platform, after which they can transfer funds directly by searching.
If the recipient cannot be found through search, they can also send a Sling link via chat applications, airdrops, or even QR codes, allowing the recipient to withdraw funds to their Sling wallet.
Currently, Sling supports over 50 countries and regions, primarily distributed across Europe and Africa.
Sling plans to support more countries and regions in the future and increase usage frequency through debit cards, Solana Pay, and other methods. Although major exchanges and some crypto wallet applications have already made their mark on the global app stage, the laws, regulations, and regulatory policies in various countries and regions still act like a shackle, causing two major issues: time and cost for cross-border fund transfers. How Sling will perform in the future remains to be seen.
