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Peak
Cast It also issues credit cards that work with standard merchant networks, allowing users to spend their stablecoin holdings at merchants that do not support cryptocurrency transactions.
The startup targets emerging markets, where access to the US dollar is restricted and remittance costs are high. KAST does not operate in India or China due to regulatory restrictions, but serves the large workforce overseas from these markets.
Co-founder Ragulan Pathi, who previously ran Circle’s operations in Asia Pacific, told TechCrunch that banking infrastructure in many countries severely lacks cross-border capabilities. The platform aims to reduce the friction in making international payments by bypassing traditional banking networks.
The launch of KAST comes at a time when stablecoin adoption is growing rapidly. More than 20 million people use stablecoins monthly around the world, many of which are concentrated in emerging markets. Stripe’s $1.1 billion acquisition of Bridge, a stablecoin infrastructure provider, in October signaled growing mainstream corporate interest in the technology.
The startup faces competition from both local crypto companies and traditional fintech companies expanding into stablecoins. PayPal launched its own dollar-pegged token, while Revolut and Ripple announced plans to issue stablecoins. The sector is also highly concentrated, with Tether controlling nearly three-quarters of the supply.
Existing neobanks struggle with blockchain integration because their underlying systems weren’t designed for cryptocurrencies, says Daniel Bertoli, another co-founder of KAST and a former partner at Quona Capital. “The next generation of digital banks will be global in nature and built on stablecoins from the ground up,” he said.
Partners from DST Global and Goodwater Capital also invested in the round. KAST declined to reveal user numbers or evaluate it, but said its growth exceeded expectations in its first four months of operation.
The startup plans to launch savings products and expand remittance services while maintaining a focus on stablecoin-based infrastructure.
While KAST only works with stablecoins, it also provides its clients with “a safe haven for their hard-earned income when local currencies decline,” said Alex Svanjevic, co-founder and CEO of analytics platform Nansen.ai and an early backer of KAST. .
“As more digital nomads get paid in stablecoins, they can now bypass the hassles of legacy rails. International transfers that previously took weeks can now be completed instantly and at virtually no cost,” he said in a statement.
For Peak Peak XV has established a presence in the United States
TechCrunch reported late last month that their former parent Sequoia is in advanced stages of deliberations to back fintech Vance. If the deal goes through, this will be the company’s first investment in India since the separation.
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