Crypto banking startup Dakota secures $ 12.5 million for global expansion in the stable coin area
Dakota, a banking platform for companies integrated into crypto, recorded $ 12.5 million in a Series A financing round to expand its cross-border banking services, the company said on Tuesday.
The investment was led by Coinfund, with the participation of 6th Man Ventures and Triton Ventures.
The announcement takes place at a time at the Stablecoinsor cryptocurrencies that are bound to an external asset, mostly on the US dollar, are becoming increasingly part of the traditional financial infrastructure and an instrument for cheaper, faster border-crossing payments. The regulation of stable coins is also progressing in the United States, with the Senate already files The Genius law and the House of Representatives to vote with the aim To the suggestion on Thursday.
We believe that StableCoins can revolutionize business customer business, “said Alex Felix, Cio of Coinfund.” Dakota opens up this potential by combining the familiarity of a bank account with the performance of the crypto infrastructure.
The startup, founded by Alumni from Coinbase, Square and Airbnb, enables companies to keep and transfer funds in US dollars or stable coins while using traditional payment networks such as Ach, Swift and SEPA. Companies can send or receive payments on the platform via regular bank accounts without interacting directly with cryptocurrencies. In the background it uses the blockchain to handle transfers almost immediately and offers an alternative to conventional banking.
The company keeps customer deposits fully reserved and covered 1: 1 by short-term US state bonds, with the aim of excluding liquidity and counterparty risks.
With the financing, the company is now expanding its services to over 100 countries, including Great Britain, the European Union, Singapore and parts of Latin America.
Companies are limitless today and the dollar is a universal language, “said Dakota CEO Ryan Bozarth.” We want to give entrepreneurs from Bogotá to Bangalore the same access to US dollar banking that a startup in San Francisco would have.
