This upstart stablecoin bank just won a rare OCC charter and raised $40 million. Its CEO is only 25

“This is the best product in the history of the world but distribution is broken,” says Ferdinand Dabitz, holding up a $100 bill. Even though U.S. dollars are the world’s favorite currency, says Dabitz, many people seeking to get them must rely on an antiquated system of banks with limited hours staffed by clerks. The 25-year-old Dabitz is the CEO of a new type of bank called Augustus that he says addresses this deficiency thanks to a payments architecture designed around AI and stablecoins, not humans. In a sign that Augustus may be on to something, the bank just received a rare federal banking charter from the Office of the Comptroller of the Currency.

Founded in 2022, Augustus already holds banking licenses in Europe, which permit it to clear cross-border euro transactions. Its customers include large financial institutions, including the global cryptocurrency exchange Kraken, and Dabitz says the bank is processing billions of euros, while growing 10x year over year. Augustus has raised $40 million from Peter Thiel’s Valar Ventures and Creandum, and from the founders of prominent digital finance firms Ramp, Deel,........

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