KAST, a fintech platform focused on stablecoins, has raised US$10 million in a seed funding round led by HSG (HongShan Capital Group) and Peak XV Partners.

The round also saw participation from angel investors and partners of DST Global and Goodwater Capital.

The funding will support KAST’s initiatives in product development, licensing, international expansion, and hiring.

The company reported that it has closed the round at a “significant but undisclosed valuation”.

KAST offers USD-denominated accounts and payment cards to users in over 150 countries, enabling them to receive income, send money, and transact with merchants worldwide.

Users can sign up in less than three minutes, with the platform supporting onramping via SWIFT at fees starting at 10 basis points.

Future plans include savings and remittance products, designed to streamline cross-border financial transactions.

By leveraging stablecoins, KAST aims to address challenges in traditional banking systems, particularly in regions with volatile currencies.

The platform’s features support payments for imports, travel, and remote work.

KAST has partnered with Bridge, a platform recently acquired by Stripe, to enhance its offerings.

The company’s founders also noted the platform’s early success, reporting user growth and revenue in the first four months as “beyond even the highest expectations.”

Co-founder Raagulan Pathy, previously a regional executive at Circle, said,

“For most countries and over half of global GDP, banking does not match the openness and speed of the Internet, it’s fundamentally broken.

Stablecoins are the clear solution, but the user experience wasn’t great. We are building KAST to change this.”

Daniel Bertoli, KAST’s co-founder and a former partner at Quona Capital, added,

“The next generation of neobanks will be built on stablecoins and inherently global by DNA.

They will differ fundamentally from the current generation of neobanks, which are limited in countries due to licensing, and struggle in integrating blockchain; their core systems and capabilities are just too different.”

Stablecoins have seen significant growth, with global transaction volumes reaching US$8.5 trillion in Q2 2024 and over 125 million users.

Analysts forecast further expansion, predicting over 1 billion users and a supply exceeding US$1 trillion by 2030.

Featured image: (From left) Co-founders of KAST Daniel Bertoli and Raagulan Pathy

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