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Rebuilding LatAm Banking

Fernando Terrés is the co-founder and CEO of ARQ (S21), a fintech company building global banking for the growing number of people in Latin America who live, work, and invest across borders. The company recently closed a $70 million Series B co-led by Sequoia and Founders Fund, and now processes more than $10 billion in annualized transaction volume. In this fireside, Fernando sat down with YC Partner Aaron Epstein to reflect on ARQ's journey from YC to one of the fastest-growing fintech companies in Latin America. https://www.arqfinance.com Apply to Y Combinator: https://www.ycombinator.com/apply Work at a startup: https://www.ycombinator.com/jobs 00:00 — ARQ's $70M Series B 00:31 — What ARC Actually Does 01:09 — The Real Pain of Cross-Border Money 03:07 — From Consulting to Startup 04:10 — The Revolut Years & Crypto Insight 06:03 — First YC Check, Mexico City Mall 07:00 — What Customers Actually Wanted 09:57 — Imposter Syndrome Is Universal 11:19 — Never Celebrating Milestones 12:38 — The "Unreasonable Ambition" Value 16:04 — How They Hire & Set Goals 18:44 — Why They Rebranded from Dollar App 23:47 — Expanding to Four Countries 27:57 — Surviving the 2022 Crypto Crash 29:42 — The Next Five Years for ARQ 31:12 — How They're Using AI 37:07 — What YC Did for ARQ

Aaron EpsteinhostFernando Terrésguest
Jun 25, 202639mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

ARQ is rebuilding LatAm cross-border banking with stablecoin infrastructure

  1. ARQ provides Latin American users with dollar-denominated global accounts, cards, and rails—built on stablecoins—to reduce FX spreads, remittance fees, and settlement delays.
  2. Early customer discovery showed demand was less about “holding digital dollars” and more about dollar utility: spending internationally, getting paid by US employers, and investing in US markets.
  3. Terrés describes a founder operating system centered on weekly “resetting the bar,” choosing unreasonable ambition, and driving accountability through a north-star metric (core MAU) and “own your number.”
  4. The rebrand from Dollar App to ARQ addressed a self-limiting product perception and an inclusion-focused ethos that didn’t match ARQ’s actual mass-affluent customer base.
  5. ARQ’s scaling playbook pairs repeatable demand-side needs across countries with highly variable regulatory/payment infrastructure work, and it is using AI heavily in code, internal tooling, support, AML, and new “private banker assistant” workflows.

IDEAS WORTH REMEMBERING

5 ideas

In LatAm, ‘global banking’ is a daily necessity, not a luxury.

ARQ targets concrete pain points—FX spreads on card spending, percentage-based remittance fees for salaries, and slow settlement for investing—by giving users dollar rails and accounts comparable to US financial access.

Product-market fit came from focusing on what customers do with dollars, not just owning them.

The team initially leaned toward store-of-value, but interviews revealed the real job-to-be-done was payments, payroll reception, and investing utility—changing what they built and how they messaged it.

Stablecoins are positioned as back-end rails, not a consumer ‘crypto bet.’

Terrés frames blockchain’s value as global-first infrastructure (24/7, automated settlement) rather than speculative assets, enabling banking-like products where traditional rails are costly or slow.

A rebrand is operational leverage when your name and ethos constrain growth.

“Dollar App” limited credibility for non-dollar use cases (e.g., investing, local-currency savings) and signaled inclusion for underserved users, while ARQ’s core users are mass affluent and want an aspirational, future-oriented identity.

Unreasonable ambition is treated as a renewable weekly choice, not a slogan.

The company avoids milestone celebration to keep urgency high, and uses goal-setting that forces people to transform how they operate rather than projecting incremental improvements.

WORDS WORTH SAVING

5 quotes

ARQ provides global accounts for people in Latin America, where there's a massive, um, demand for dollar-denominated financial services.

Fernando Terrés

You know, access to dollar is something that you may take for granted in the States, um, but, but it's something that in many parts of the world is a luxury.

Fernando Terrés

I remember being like, "Man, like these people, they're explaining in plain English, in very simple terms, uh, how to build a company that transcends, that impacts humanity."

Fernando Terrés

Look, all of these things that we did great last week, they no longer matter. We're not going to discuss them. We're going to discuss the two, three things where we need to do better.

Fernando Terrés

This is not something that comes natural to people. It's a choice. And, and, and, and this vow is about the need to renew every week.

Fernando Terrés

Stablecoins as banking infrastructureLatAm demand for dollar-denominated servicesCross-border FX, remittances, and settlement painCustomer discovery and “utility” vs store-of-valueMass-affluent fintech positioningCulture values: unreasonable ambition, accountabilityCountry expansion: demand similarity vs infra differencesRebrand rationale and naming strategySurviving market cycles (2022 crypto crash)AI in engineering, ops, support, and AML

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