Crypto-integrated banking startup Dakota has raised $12.5 million in a Series A funding round, the company announced on Tuesday. The round was led by CoinFund, with support from 6th Man Ventures and Triton Ventures. This funding marks a major step in Dakota’s mission to scale its global stablecoin-powered banking services to more than 100 countries.

The capital will be used to accelerate the platform’s international expansion and support the growing demand for cross-border payments powered by stablecoins—cryptocurrencies pegged to traditional assets like the U.S. dollar.

Stablecoins Reshape Business Payments

The announcement aligns with a broader trend in global finance: the increasing adoption of stablecoins for cross-border payments. With their ability to facilitate faster and cheaper transactions, stablecoins are being viewed as a modern alternative to outdated systems like SWIFT and ACH.

Regulatory clarity is also improving. The U.S. Senate recently passed the GENIUS Act, aiming to provide a comprehensive legal framework for stablecoins. A corresponding vote is expected in the House of Representatives later this week, signaling growing institutional support for these digital assets.

“We believe stablecoins can revolutionize business banking,” said Alex Felix, CIO of CoinFund. “Dakota is unlocking that potential by combining the familiarity of a bank account with the power of crypto rails.”

Banking Without the Crypto Complexity

What sets Dakota apart is its user-friendly experience. While the platform uses blockchain technology behind the scenes, businesses do not need to interact directly with crypto. Instead, they can send and receive funds in U.S. dollars via familiar channels like ACH, SWIFT, and SEPA.

Founded by former employees of Coinbase, Square, and Airbnb, Dakota allows global businesses to hold funds in USD or stablecoins, while blockchain infrastructure ensures near-instant settlement. This hybrid approach merges the reliability of traditional banking with the speed and efficiency of crypto.

Fully Reserved and Risk-Conscious

Dakota also emphasizes financial security. The company holds all customer deposits 1:1 in short-term U.S. Treasuries, ensuring full liquidity and minimizing counterparty risk. This fully reserved model reflects a conservative approach often lacking in earlier crypto banking experiments, and adds to its appeal among institutional clients.

Borderless Banking for a Global Market

With fresh capital in hand, Dakota is now launching services in over 100 countries, including major regions like the United Kingdom, European Union, Singapore, and parts of Latin America.

"Business today is borderless, and dollars are a universal language,” said Ryan Bozarth, CEO of Dakota. “We want to give entrepreneurs from Bogotá to Bangalore the same access to U.S. dollar banking that a startup in San Francisco would have.”

Dakota’s expansion comes as stablecoins continue to integrate into mainstream finance, signaling a future where cross-border business banking could be faster, cheaper, and more accessible than ever before.