KAST Secures $10M Seed Round Led By HongShan Capital Group and Peak XV Partners
KAST, an innovative fintech platform that leverages stablecoins to provide a neobank-style experience, has successfully secured US$10 million in seed funding. The funding round was spearheaded by HSG (HongShan Capital Group) and Peak XV Partners. A selection of prominent angel investors and partners from DST Global and Goodwater Capital participated in the round.
For most countries and over half of global GDP, banking does not match the openness and speed of the Internet; its fundamentally broken. Stablecoins are the clear solution, but the user experience wasnt great. We are building KAST to change this, adds Raagulan Pathy, KASTs Co-Founder. Pathy is a stablecoin expert, formerly the VP for Asia Pacific & CEO for Singapore at Circle, best known for USDC.
KAST provides users with payment cards and USD-denominated accounts across more than 150 countries, enabling seamless cash transactions and collaborating with partners like Bridge, which Stripe recently acquired. KAST is on the verge of unveiling savings and remittance products, enabling users to engage without directly interacting with fiat currency. The evolution of stablecoin regulation and its growing acceptance has catalyzed swift integration with traditional finance systems, empowering users to transfer funds with enhanced speed, reduced costs, and increased security. KAST showcased compelling use cases, including using USD stablecoins as a reliable alternative to fluctuating currencies, facilitating purchases of imports and travel through a card, and empowering remote workers worldwide to receive their earnings seamlessly.
KAST provides users with payment cards and USD-denominated accounts across more than 150 countries, enabling seamless cash transfers and collaborations with partners like Bridge, which Stripe recently acquired. KAST is gearing up to unveil savings and remittance products, enabling users to engage without interacting with fiat currency directly. The evolution of stablecoin regulation and its growing acceptance has catalyzed a swift convergence with traditional financial systems, allowing users to transfer funds with increased speed, reduced costs, and enhanced security. KAST showcased compelling use cases, including using USD stablecoins as a reliable alternative to fluctuating currencies, facilitating import and travel purchases through a card, and providing a seamless payment solution for remote workers worldwide.
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, comments Daniel Bertoli, co-founder of KAST and former Partner at Quona Capital, a global FinTech fund that focuses on investments in neobanks.
KAST has successfully wrapped up a $10 million seed funding round, though the valuation remains undisclosed. Within its first four months, the company has demonstrated strong early traction in terms of user adoption and revenue. The team sees this as a clear indicator of its platforms global enthusiasm.
Stablecoins have seen impressive expansion, boasting a supply exceeding US$170 billion and a staggering US$8.5 trillion in transaction volume during Q2 2024, utilized by more than 125 million users. Experts forecast that 2030 the user base will soar past 1 billion, while the supply is set to exceed US$1 trillion.
KAST delivers real benefits to global users. Their USD-denominated accounts provide a safe haven for hard-earned income when local currencies decline, especially for those without access to traditional US accounts. As more digital nomads receive salaries in stablecoins, they can now bypass the hassle of legacy rails. International transfers that once took weeks can now be completed instantly and at virtually no cost, said Alex Svanevik (CEO/co-founder of Nansen.ai, an early investor in KAST).
Read more: https://zycrypto.com/kast-secures-10m-seed-round-led-by-hongshan-capital-group-and-peak-xv-partners/
Text source: ZyCrypto
