Stablecoin fintech KAST raises $80 million in Series A to fund global expansion

Stablecoin payments firm KAST said Monday it has secured $80 million in a Series A funding round to expand its stablecoin-powered cross-border payments platform. QED Investors and Left Lane Capital co-led the round, with participation from Peak XV Partners, HSG, and DST Global Partners, according to a statement.

Per its website, KAST operates as a financial technology firm rather than a bank, utilizing partnerships with regulated institutions to facilitate payments, custody, and on-ramp services. Founded in July 2024 by former Circle Vice President Raagulan Pathy, the company enables users to “store, earn, and spend” digital dollars via Visa-supported cards.

The company said the Series A funding will support expansion across North America, Latin America, and the Middle East, as well as broader product development, including the launch of KAST Business, hiring, and investment in licensing and compliance. 

KAST’s leadership said the timing aligns with a shift in stablecoin adoption, with tokens increasingly used as a payment and settlement rail rather than only as trading instruments.

On Monday, Bloomberg reported that the fundraising valued KAST at $600 million, citing people familiar with the matter. The report noted that KAST anticipates its annual revenue run rate will reach $100 million this year.

Stablecoin adoption, volumes, and funding momentum

The investment comes amid a period of sustained growth in the stablecoin sector. According to The Block’s data dashboard, the total supply of U.S. dollar-pegged stablecoins is approaching $297 billion. 

Tether’s USDT accounts for the largest share of this supply at approximately $184 billion, representing 61.9% of the market. Circle’s USDC holds approximately $77 billion, or 25.9% of the total supply.

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Onchain activity has also recorded recent peaks. Monthly stablecoin transaction volume on Solana reached $650 billion in February, more than double its previous monthly record, according to Grayscale data. The figure represented the highest stablecoin volume across all blockchains for that month.

Meanwhile, KAST’s Series A is part of a broader trend of institutional capital entering the stablecoin payments space. On Jan. 9, stablecoin infrastructure firm Rain raised $250 million at a $1.95 billion valuation. The company said it would use the capital to expand across North and South America, Europe, Asia, and Africa. 

More recently, on March 4, the startup Cyclops secured $8 million from Castle Island Ventures and Shift4 Payments to develop merchant settlement infrastructure.