Startup Funding Focuses on Crypto Infrastructure
Stablecoin payment platform KAST raised $80M at a $600M valuation, while Utexo raised $7.5M to enable USDT settlement on Bitcoin. VCs are targeting core infrastructure like payments and stablecoins, with a focus on compliance and automation. Early-stage exposure to these rails may yield asymmetric returns.
KAST, founded in July 2024 by a former Circle executive, aims to be a neobank for a global, digitally native user base, offering USD-denominated accounts and global pay-in/payout capabilities in over 190 countries. KAST's infrastructure is built on stablecoin rails instead of traditional payment systems, facilitating faster and more efficient international money transfers. KAST has one million users and processes nearly $5 billion in annual transactions and expects to hit a $100 million annual revenue run rate in 2026. KAST is planning to launch a KAST token in Q4 2025 to reward users. Utexo, co-founded by Chris Hutchinson and Viktor Ihnatiuk, is building Bitcoin-native stablecoin settlement infrastructure. Tether co-led Utexo's $7.5 million seed round with Big Brain Holdings and Portal Ventures. Utexo enables native USDT settlement directly on Bitcoin, including the Lightning Network, with fixed, predictable fees. Utexo combines Bitcoin, Lightning, and RGB into a usable payment stack accessible through a single API. VC investment in crypto infrastructure reflects a broader trend of moving from experimentation to execution. In 2025, AI companies captured 65% of all venture deal value. Investors are concentrating capital into fewer, larger bets, with a focus on revenue, regulation, and institutional clients. Regulatory frameworks for stablecoins are maturing, with the US GENIUS Act signed into law in July 2025. Stablecoin compliance includes KYC, AML, and Travel Rule obligations. Stablecoins are expected to exceed $1 trillion in 2026, powering cross-border payments and corporate treasury operations globally.
