Capital acquisition of $12.5 million in Series A funding secured for a crypto-linked business banking platform.
In the ever-evolving world of finance, a new player is making waves. Dakota, a crypto-integrated business banking platform, has recently secured $12.5 million in Series A funding, led by CoinFund, with participation from 6th Man Ventures and Triton Ventures.
Founded by veterans from Coinbase, Square, and Airbnb, Dakota aims to revolutionise international business finance by merging the speed and transparency of stablecoins with the security of U.S. Treasuries. Since its launch in 2023, the platform has attracted over 500 business customers, processing billions of dollars in annual transaction volume, with a significant portion of its clients being non-U.S. businesses.
Dakota's platform allows companies to hold and transfer funds in USD or stablecoins, utilising familiar payment methods such as ACH, Fedwire, SWIFT, and SEPA. Crucially, customer funds are kept fully reserved and under client control.
CEO and co-founder, Ryan Bozarth, emphasises the importance of maintaining security and compliance while enabling instant and free money transfers. He asserts that Dakota aims to eliminate the limitations faced by companies due to slow wire transfers, limited banking access, and loss of customer control over funds once they enter a bank.
The platform leverages blockchain technology for nearly instant transfers, and Dakota uses stablecoins and backs deposits with U.S. Treasuries to eliminate counterparty and liquidity risks. This approach, as described by Alex Felix, CIO of CoinFund, combines the familiarity of a bank account with the power of crypto rails.
Looking ahead, Dakota plans to accelerate its mission to create a globally accessible business bank account. The company intends to expand its offerings, which already include corporate cards and support for international payment networks, to simplify cross-border transactions.
Dakota is poised to benefit from significant progress on stablecoin legislation in the U.S. and similar developments globally. Stablecoins, being pegged to underlying assets like the U.S. dollar, are expected to play a crucial role in speeding up cross-border payments and reducing transaction fees.
Dakota is focusing on growing its customer base, securing more banking partnerships, and investing in compliance and regulatory efforts. The company envisions a future where startups can easily hold dollars on-chain and send payments worldwide in seconds, leveraging stablecoin-powered banking. This vision positions Dakota as a potential pioneer in the field.
In summary, Dakota is advancing its mission to integrate stablecoins into business banking, leveraging regulatory progress and expanding its services to become a leader in global, internet-age banking solutions.
- The fintech startup, Dakota, is using a combination of technology, finance, and investing in stablecoins and U.S. Treasuries, aiming to revolutionize the industry by providing a secure and efficient platform for international business finance.
- In the competitive fintech industry, Dakota, with its unique approach that merges the speed and security of stablecoins with the familiarity of a bank account, is seeking to eliminate limitations faced by companies in terms of slow wire transfers, limited banking access, and loss of customer control over funds.
