Peak XV and HongShan, the Indian and Chinese investment firms that split from powerhouse Sequoia last year, co-led an initial $10 million investment in KAST, a dollar neobank-like platform that allows customers to hold and spend stablecoins through traditional payment methods.
Cast also issues credit cards that work with standard merchant networks, enabling users to spend their stablecoin holdings at merchants that do not support crypto transactions.
The startup targets emerging markets, where access to USD is limited and remittance costs are high. KAST does not operate in India or China due to regulatory restrictions, but serves the large offshore workforce from these markets.
Co-founder Raagulan Pathy, who previously ran Circle’s Asia Pacific operations, told TechCrunch that the banking infrastructure in many countries is severely lacking in cross-border capabilities. The platform aims to reduce friction when making international payments by bypassing traditional banking networks.
KAST’s launch comes as stablecoin adoption is experiencing rapid growth. More than 20 million people use stablecoins every month around the world, and much of this is concentrated in emerging markets. Stripe’s $1.1 billion acquisition of stablecoin infrastructure provider Bridge in October further signaled growing mainstream corporate interest in the technology.
The startup faces competition from both native crypto companies and traditional fintech companies that are expanding into stablecoins. PayPal launched its own dollar-pegged token, while Revolut and Ripple announced plans to issue stablecoins. The sector is also highly concentrated, with Tether controlling roughly three-quarters of the supply.
Daniel Bertoli, KAST’s other co-founder and former partner at Quona Capital, argues that existing startup banks struggle with blockchain integration because their core systems were not designed for crypto. “The next generation of digital banking will be inherently global and based on stablecoins from the ground up,” he said.
Partners from DST Global and Goodwater Capital also invested in the round. KAST declined to disclose user numbers or its valuation, but said its growth had exceeded forecasts in its first four months of operation.
The startup plans to launch savings products and expand remittance services while maintaining a focus on stablecoin-based infrastructure.
Because KAST only works with stablecoins, it also offers its clients “a safe haven for hard-earned income when local currencies go down,” said Alex Svanevik, co-founder and CEO of analytics platform Nansen.ai and one of the first supporters of KAST .
“As more digital nomads receive wages in stablecoins, they can now bypass the hassle of old railroads. International transfers that once took weeks can now be completed instantly and at virtually no cost,” he said in a statement.
For Peak XV and HongShan, this is their first joint deal since splitting from Sequoia in June 2023. The companies are increasingly operating beyond their traditional geographies — HongShan has expanded into Europe and North Asia as it works to grow its $9 billion capital pool, while Peak XV has established a presence in the U.S.
Former parent Sequoia is in advanced discussions to back fintech Vance, TechCrunch reported late last month. If the deal goes through, it will be the company’s first investment in India post-separation.
