The trend of instant payments is becoming the norm domestically for both individuals and companies, but international transfers lag behind. Caliza aims to bridge this gap, beginning with its initiatives in Latin America.
Established in 2021 by American innovator Ezra Kebrab, now residing in São Paulo, Brazil, Caliza presents an option besides the traditional SWIFT transfer system, predominantly used in the Americas, which often takes several days for transactions to complete.
Caliza has developed an API along with a user-friendly payment interface that leverages crypto stablecoins, particularly the Circle’s reserve-backed USDC, along with pre-existing instant payment channels. This combination facilitates immediate cross-border transactions and provides global traders with digital U.S. dollar accounts.
While the company has refrained from disclosing its clientele, it mentioned that its users include banks or fintech entities looking to enhance support for international commercial activities, as well as personal transactions such as remittances and employee payments.
The venture recently secured a funding influx of $8.5 million spearheaded by Initialized.
Kebrab transitioned into the crypto space from Visa, where he realized the demand for quicker transaction solutions, especially pertinent to Latin America. He illustrated this by referring to a company in Mexico that could face financial losses due to payment delays affecting the initiation of nearshoring activities.
Mexico is a targeted market for Caliza’s expansion plans set for this fall, slightly behind the initial schedule. Kebrab did not detail the reasons for the delay but underscored the firm’s commitment to adhering to regulatory and compliance expectations, including acquiring necessary licenses.
Currently, Caliza employs a ten-member team primarily stationed in Brazil and is looking to expand its workforce in light of the new financing round. The company is also progressing with its launch plans within the local market as previously announced.
Brazil is already familiar with the concept of instant digital payments through its Pix system, akin to India’s UPI platform, which even local vendors have adopted, as pointed out by Kebrab.
However, international payments present a unique challenge. While Europe has largely addressed this issue through the establishment of the Single Euro Payments Area (SEPA), the Americas remain disjointed, offering Caliza a strategic advantage in pioneering a superior alternative to SWIFT.
Caliza focuses on aiding existing financial frameworks rather than replacing them. Kebrab emphasized the inevitable role of banking institutions as government-regulated intermediaries but is confident in Caliza’s enduring presence in the sector, drawing inspiration for the company’s name from limestone, known for its durability and use in historical architecture.
The fluctuating values of currencies, especially in Latin America, highlight the need for stable financial solutions. For instance, the Brazilian real has seen significant depreciation against the U.S. dollar this year. Caliza’s goal is to furnish immediate and dependable liquidity to all, indicating ambitions beyond Latin America, potentially aiming towards Africa, reflecting Kebrab’s heritage.
Following an initial funding round of $5.3 million in 2021, the company’s latest financial backing comes from Initialized, alongside contributions from Abstract Ventures, Class 5 Global, Digital Currency Group, Kraynos Capital, New Form Capital, and Quona, with several fintech leaders joining as angel investors.
Correction: A previous version of this article inaccurately stated Caliza as Initialized’s inaugural investment with a focus on Latin America. Although headquartered in the U.S., Initialized has participated in several other investments within the region, clarified a company spokesperson.
Compiled by Techarena.au.
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