KAST, a stablecoin-focused fintech, has just raised $10 million in seed funding. The round is led by HSG (HongShan Capital Group) and Peak XV Partners, with participation from angel investors, notably from DST Global and Goodwater Capital. KAST offers US dollar accounts and payment cards available in more than 150 countries, with a roadmap that includes savings and money transfer products. The company is riding the momentum of the stablecoin market, whose total market capitalization crossed $250 billion in 2025 according to CoinDesk data.
The deal in detail
This seed funding, an early-stage financing step, puts KAST on an aggressive scaling trajectory. Several characteristics of the round deserve attention:
- Led by HSG (HongShan Capital Group), formerly Sequoia China, rebranded in 2023, one of the most active venture capital funds in Asia;
- Co-led by Peak XV Partners, formerly Sequoia India & Southeast Asia, also born from the Sequoia split;
- Angel investors DST Global and Goodwater Capital, two funds known for their early- and growth-stage consumer tech bets.
This combination of investors reflects a clear positioning: KAST targets emerging markets, particularly in Asia, Latin America and Africa, where demand for USD accounts is strong while access to traditional banking services remains limited. As Bloomberg notes in several analyses of the stablecoin segment, these regions have seen stablecoin usage surpass that of Bitcoin and Ether on certain transfer corridors.
HSG and Peak XV: two Asian heavyweights
HSG (HongShan Capital Group) manages over $50 billion in assets and has backed flagship companies such as Alibaba, Pinduoduo, Meituan and ByteDance. Peak XV Partners manages around $9 billion and counts companies such as Zomato, Byju's and Razorpay in its portfolio. Co-leadership by these two funds gives KAST privileged access to the Indian and Southeast Asian markets, two regions with strong potential for stablecoins.
What does KAST do?
KAST positions itself as a global neobanking platform built on stablecoins. The current offering is structured around three core components:
- USD accounts funded with stablecoins, available to individuals and businesses in more than 150 countries;
- Payment cards that let you spend your balance at merchants accepting Visa or Mastercard;
- Fiat / stablecoin conversion on both entry and exit to make everyday use easier.
The roadmap includes savings products (yields on stablecoins via DeFi protocols or institutional strategies) and cross-border money transfer solutions — a segment where Les Echos regularly highlights the competitive advantage of stablecoins over solutions like Western Union or traditional correspondent banks.
The founding argument: addressing the flaws in the banking system
For many users in emerging markets, accessing a dollar account is complex: KYC requirements, currency controls, high account maintenance fees. Stablecoins offer an alternative:
The stablecoin market is booming
The 2024-2025 period marked a turning point for stablecoins. Combined market capitalization crossed $250 billion, and several major regulations brought legal clarity:
- The EU MiCA regulation, fully applicable since December 30, 2024, which governs the issuance and distribution of stablecoins in Europe;
- Frameworks taking shape in the United States with the GENIUS Act and the STABLE Act, closely followed by the Wall Street Journal;
- First Asian licenses in Singapore, Hong Kong, and Japan, paving the way for regulated products.
According to a Maddyness analysis of the fintech ecosystem, these regulatory developments are creating a tailwind for hybrid crypto-fiat fintechs, which can now operate with unprecedented legal clarity across multiple jurisdictions.
Direct competitors and positioning
KAST operates in a densely populated ecosystem. Three broad categories of players shape the market:
- Pure-play crypto neobanks: Bitwage, MetaMask Card via Mastercard, Crypto.com Cards;
- Fiat-first neobanks with crypto offerings: Revolut, N26, Nubank;
- Multi-chain wallets with card integration: Phantom, MetaMask, Trust Wallet.
KAST's positioning - a dollar-first neobank built on stablecoins and targeting emerging markets - sets it apart from Revolut (Europe-first, multi-currency) and pure crypto neobanks (focused on users already familiar with crypto). It's a commercially promising space if the company manages to industrialize its KYC onboarding and compliance.
The specific challenges of a global stablecoin-first fintech
Launching a neobank operating in more than 150 countries means solving several complex equations:
AI applications in the fight against fraud are becoming a competitive advantage for processing behavioral signals at scale and limiting losses.
Roadmap and key points to watch
With $10M in cash, KAST has an operational runway of around 18 months, depending on hiring pace and marketing spend. Several milestones to watch:
- Growth in the number of accounts opened and monthly active users;
- 90-day retention rate - a key metric for demonstrating stickiness;
- Transaction volumes and revenue per user (interchange + spread + any fees);
- Obtaining licenses or banking partnerships in key target jurisdictions.
For growth teams in B2C fintech, the quality of unit economics will determine the upcoming Series A raise. Stablecoin-first fintechs will have to prove that they're not just attractive on the geo-arbitrage argument, but that they're building a lasting relationship with their users.
FAQ
How much has KAST raised?
KAST raised $10 million in seed funding. The round was led by HSG (HongShan Capital Group) and Peak XV Partners, alongside business angels from DST Global and Goodwater Capital.
Who are HSG and Peak XV Partners?
HSG (HongShan Capital Group) is the former Sequoia China, rebranded in 2023. Peak XV Partners is the former Sequoia India & Southeast Asia. Both funds manage tens of billions of dollars and rank among the leading tech investors in Asia.
What does KAST offer?
KAST offers US dollar accounts funded with stablecoins, available to users in more than 150 countries, with payment cards that let them spend their balance via Visa or Mastercard. The roadmap includes savings products and cross-border money transfers.
How does it differ from Revolut or Crypto.com?
Revolut is a fiat-first neobank focused on Europe, with crypto as a complementary offering. Crypto.com targets users already familiar with crypto. KAST positions itself in emerging markets, where demand for a USD account is strong and access to the traditional banking system remains limited.
Why is the stablecoin market booming?
The combined market capitalization of stablecoins crossed $250 billion in 2025. The EU's MiCA regulation has been fully in force since late 2024, and the US frameworks taking shape (GENIUS Act, STABLE Act) are bringing new legal clarity. Asian markets (Singapore, Hong Kong, Japan) are issuing their first licenses. This clarity paves the way for hybrid crypto-fiat fintechs to operate securely.