Stablecoin Neobank KAST Raises $80M
KAST, a neobank built on stablecoin rails, has raised an $80 million Series A. The funding highlights accelerating investor interest in programmable money and fintechs that promise instant, low-cost global transfers, a valuation benchmark that dwarfs the Series A rounds of earlier fintech giants like Robinhood and Revolut.
The $80 million Series A was co-led by QED Investors and Left Lane Capital, with participation from existing investors Peak XV Partners, HSG, and DST Global Partners. The funding round values KAST at approximately $600 million. This capital is earmarked for aggressive expansion into North America, Latin America, and the Middle East, as well as for enhancing licensing and compliance frameworks. Founder and CEO Raagulan Pathy, a former executive at Circle (the issuer of the USDC stablecoin), launched KAST in July 2024. Since its launch, the platform has grown to over one million users and processes nearly $5 billion in annualized transaction volume. The company projects it will reach a $100 million annual revenue run rate in 2026. KAST's platform allows users to hold USD-denominated accounts and utilize a Visa card to spend stablecoins like USDC and USDT at millions of merchants worldwide. It bridges digital assets with traditional finance by allowing deposits and transfers via systems like Fedwire and ACH, with seamless conversions between fiat and stablecoins happening in the background. The core technology relies on stablecoins as settlement rails, which enables faster and cheaper cross-border transactions compared to traditional banking systems that are often slow and expensive. This model is particularly attractive in emerging markets where local currencies can be volatile, creating high demand for dollar-denominated assets. To attract and retain user funds, KAST offers "Earn Vaults" that provide a 5% to 9% annual percentage yield (APY) on stablecoin deposits. This feature integrates with DeFi risk manager Gauntlet to generate sustainable yield for its users. The company has been rapidly scaling its team, hiring over 250 employees from major tech and fintech companies including Stripe, Revolut, Binance, and Circle. In addition to its consumer offerings, KAST plans to launch "KAST Business" to extend its services to corporate clients.
