May 2025 has been a landmark month for fintech, with significant funding rounds underscoring a transformative shift in global payments. The convergence of fintech funding and crypto payments is reshaping the landscape of cross-border transactions, signaling a move towards more efficient, transparent, and inclusive financial systems.
This article delves into the major fintech funding events of May 2025, highlighting how these investments are propelling the adoption of crypto-enabled cross-border payments. We’ll explore the key players, the strategic moves they’re making, and the broader implications for the global financial ecosystem.
Major Fintech Funding Rounds in May 2025
Circle’s IPO and Expansion
Circle Internet Financial, the issuer of the USDC stablecoin, has taken a significant step towards going public. In May 2025, Circle increased its IPO size and pricing range, aiming to raise up to $896 million at a valuation of $7.2 billion. This move reflects the growing investor confidence in stablecoins and their role in the future of payments.
USDC, Circle’s stablecoin, is the seventh-largest cryptocurrency by market capitalization, valued at nearly $61 billion. The company’s decision to go public underscores the mainstream acceptance of stablecoins and their potential to revolutionize cross-border payments by offering faster, cheaper, and more transparent transactions.
Airwallex’s Series F Funding
Airwallex, a global payments and financial platform, secured a $300 million Series F funding round, elevating its valuation to $6.2 billion. The funding round included major investors such as Square Peg, DST Global, Lone Pine Capital, and Blackbird, bringing the company’s total funding to over $1.2 billion.
Founded in Melbourne in 2015 and now headquartered in San Francisco, Airwallex plans to use the new capital to expand into markets such as Japan, Korea, the UAE, and Latin America, and to enhance its technological capabilities. The company enables international invoice and payment processing and reported a compounded annual growth rate of over 250% in gross profit across the Americas and Europe over the past four years. Its prominent clients include Shein, Qantas, and Xero.
Dojo’s Investment for European Expansion
Dojo, a UK-based fintech specializing in payment technology, closed its first investment round by raising $190 million (€167 million) from Vitruvian Partners. This capital injection will accelerate Dojo’s expansion in the UK and key European markets like Spain, Ireland, and Italy.
Since its launch in 2021, Dojo has rapidly grown, processing between six and nine million transactions daily and offering payments for 50 million unique cards monthly in the UK. The company’s cloud-native platform provides constant connectivity and ultra-fast payments, catering to sectors such as hospitality, retail, and tourism. The new funding will support Dojo’s mission to reinvent the payments landscape and foster the digital transformation of commerce.
Mesh’s Series B Round
Mesh, a crypto payments startup, raised $82 million in a Series B funding round led by Paradigm, with participation from Consensys and others. The company aims to simplify the integration of crypto payments into various platforms, enhancing the accessibility and usability of digital currencies for everyday transactions.
Conduit’s Series A Funding
Conduit, a company specializing in stablecoin-powered cross-border payments, secured $36 million in a Series A funding round. The firm focuses on leveraging stablecoins to facilitate efficient and cost-effective international transactions, addressing the challenges of traditional cross-border payment systems.
These significant funding rounds in May 2025 highlight the growing investor interest in fintech companies that are pioneering advancements in cross-border crypto payments. The infusion of capital into these firms underscores the industry’s momentum towards embracing digital currencies and blockchain technology to revolutionize global financial transactions.
The Rise of Cross-Border Crypto Payments
Adoption by Major Players
In a landmark move, the Reserve Bank of India granted in-principle approval to PayPal Payments Pvt Ltd and Worldline ePayments India to operate as cross-border payment aggregators. This authorization enables these fintech giants to facilitate international transactions for Indian exporters and importers, streamlining the payment process and enhancing efficiency.
Ripple, a prominent player in blockchain-based payment solutions, has expanded its footprint in the United Arab Emirates by partnering with Zand Bank and fintech startup Mamo. These collaborations mark Ripple’s first blockchain-enabled payment clients in the UAE, leveraging its Ripple Payments platform to facilitate real-time cross-border transactions using a combination of stablecoins, cryptocurrencies, and local currencies.
Infrastructure Developments
Circle has launched the Circle Payment Network (CPN), a blockchain-based system designed to support B2B cross-border payments using its USDC stablecoin. Hong Kong-based RedotPay, serving over four million users, has integrated with CPN to enable users to send cryptocurrency directly to Brazilian bank accounts, with funds automatically converted into Brazilian Real upon arrival.
Project mBridge, a collaborative initiative among multiple central banks, aims to explore a multi-central bank digital currency (CBDC) platform to facilitate instant cross-border payments and settlements. Having reached the minimum viable product stage in mid-2024, the project represents a significant step toward integrating CBDCs into the global financial system, potentially revolutionizing how cross-border transactions are conducted.
Impact on Emerging Markets
Despite a surge in fintech innovation across Africa, the continent’s cross-border payments system remains heavily dependent on Europe and the US. High costs and fragmented systems continue to pose challenges for businesses and consumers, underscoring the need for localized solutions and infrastructure development.
Latin America is experiencing a significant shift toward digital payments, with mobile wallets and payment apps becoming increasingly prevalent. In 2024 alone, the region processed 64 billion transactions, marking a 53% increase from the previous year. This surge indicates a growing preference for digital payment methods over traditional cash transactions, driven by the convenience and accessibility of mobile financial tools.
Regulatory Landscape and Institutional Adoption
New Hampshire’s Pioneering Crypto Investment Legislation
In a landmark decision, New Hampshire has become the first U.S. state to authorize the investment of public funds into cryptocurrency. Governor Kelly Ayotte signed legislation permitting the state treasurer to allocate up to 5% of public funds into digital assets with a market capitalization exceeding $500 billion, effectively allowing investments in Bitcoin. This move reflects a growing institutional acceptance of cryptocurrencies as viable assets for public investment portfolios.
Major Banks’ Foray into Stablecoins
Recognizing the transformative potential of stablecoins in cross-border transactions, major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are reportedly in discussions to launch a joint stablecoin. This initiative aims to provide a regulated alternative to existing cryptocurrencies, facilitating faster and more efficient cross-border payments.
The proposed stablecoin would be backed by cash or government securities, ensuring stability and compliance with regulatory standards. By leveraging their existing infrastructure and customer base, these banks aim to offer a secure and efficient digital payment solution that can compete with emerging fintech and crypto platforms.
Regulatory Developments: The GENIUS Act
On the legislative front, the U.S. Senate has advanced the GENIUS Act, a bill designed to establish a regulatory framework for stablecoins. The act mandates one-to-one reserve backing, prohibits interest payments on stablecoins, and enhances anti-money laundering protocols. These measures aim to mitigate systemic risks and ensure consumer protection in the rapidly evolving digital asset landscape.
The GENIUS Act’s progression reflects a broader governmental effort to provide clarity and oversight in the crypto space, balancing innovation with financial stability. As stablecoins become increasingly integrated into payment systems, such regulatory frameworks are crucial for fostering trust and ensuring the resilience of financial markets.
Future Outlook
G20’s Roadmap for Enhancing Cross-Border Payments
The G20 has outlined a comprehensive roadmap aimed at addressing the challenges of cross-border payments, including high costs, slow processing times, and limited access. The roadmap sets ambitious targets to be achieved by 2027, focusing on enhancing speed, reducing costs, increasing access, and improving transparency.
Key initiatives under this roadmap include the harmonization of messaging standards through ISO 20022, the interlinking of fast payment systems, and the development of common data frameworks. These efforts aim to create a more efficient and inclusive global payment ecosystem, leveraging technological advancements to overcome existing frictions.
Integration of Stablecoins into Payment Systems
Stablecoins are increasingly being recognized for their potential to streamline cross-border transactions. Companies like Visa and Stripe are exploring the integration of stablecoins into their payment platforms, aiming to enhance liquidity management and reduce settlement times.
For instance, Visa has tested the use of USDC for settlement, while Stripe has acquired Bridge Network to facilitate stablecoin-based payouts and collections. These developments indicate a growing trend of incorporating digital assets into traditional payment infrastructures, offering users faster and more cost-effective transaction options.
Emphasis on Regulatory Clarity and Consumer Protection
As the adoption of crypto payments accelerates, regulatory clarity becomes paramount. Clear guidelines and oversight mechanisms are essential to ensure consumer protection, prevent illicit activities, and maintain financial stability. The progression of legislation like the GENIUS Act exemplifies efforts to establish a balanced regulatory environment that fosters innovation while safeguarding the interests of all stakeholders.
Conclusion
The surge in fintech funding during May 2025 underscores a pivotal shift in the global financial landscape, with a pronounced emphasis on cross-border crypto payments. This trend is not merely a fleeting interest but a reflection of a broader movement towards more efficient, transparent, and inclusive financial systems.
Circle’s upsized IPO, Airwallex’s strategic expansion, and investments into companies like Mesh and Conduit collectively illustrate how capital is flowing into crypto-forward payment infrastructure. Regulatory momentum and institutional buy-in—from state treasuries to multinational banks—are further solidifying crypto’s role in the future of finance.
Looking ahead, with global initiatives like the G20’s roadmap, the integration of stablecoins, and collaborative regulatory efforts, cross-border crypto payments are poised to move from emerging concept to mainstream solution—one transaction at a time.
