Stablecoin Infrastructure Startups Attract $98M as Regulatory Clarity Drives Investment Surge
Two stablecoin infrastructure companies have raised nearly $100 million combined this week, demonstrating accelerated investor interest in cryptocurrency payment systems following recent regulatory developments.
On Thursday, Rain, a Visa-partnered card issuer enabling stablecoin spending, secured $58 million in Series B funding led by Sapphire Ventures, while M0 announced a $40 million round led by Polychain Capital and Ribbit Capital.
Rain's latest funding represents a six-fold valuation increase from its $24.5 million Series A completed in March, according to sources familiar with the transaction. The company has achieved over $1 billion in annualized spending volume on its stablecoin-backed cards and experienced 10x growth in 2025.
The payment startup issues Visa-enabled cards that allow users to spend stablecoins at any location accepting Visa payments. Founded by CEO Farooq Malik and CTO Charles Yoo-Naut in 2021, Rain provides infrastructure for neobanks and fintech firms to offer stablecoin payment programs through a single API integration.
M0, meanwhile, is building what founder Luca Prosperi calls the "layer zero of money" – infrastructure enabling stablecoin issuers to deploy tokens across multiple blockchains with seamless interoperability. The company has raised almost $100 million total and recently partnered with MetaMask for the wallet's stablecoin launch.
"We cannot have 1,000 different Tethers and Circles," Prosperi told Fortune, referring to major stablecoin issuers. "So what we did is create a layer where different issuers can come and connect and just ensure interoperability, liquidity among themselves."
Both funding rounds follow Congressional passage of stablecoin legislation in July, which created regulatory clarity that venture investors say has unleashed institutional demand for cryptocurrency payment infrastructure.
"Stablecoins are proliferating," Josh Rosenthal, a general partner at Polychain, told Fortune. "This is one of the hotter areas within the market—within all of fintech, frankly."
Rain's infrastructure serves over 1.5 billion people through partner integrations and is expanding into Europe, Middle East, Africa, and Asia-Pacific markets. The company operates as a Visa Principal Member and settles 100% of card volume directly in stablecoins rather than converting to traditional currencies.
M0 focuses on enabling cross-blockchain stablecoin functionality, allowing different issuers to operate on a shared infrastructure layer. The startup aims to scale its network of stablecoin partners before focusing on profitability, similar to Uber's early expansion strategy.
The funding wave reflects broader institutional adoption of stablecoins, which have grown to over $300 billion in circulation. Major corporations including Meta, Airbnb, JP Morgan Chase, and Bank of America are exploring stablecoin integration as the tokens gain acceptance for commercial transactions.
The rapid evolution of stablecoin infrastructure comes as the market undergoes fundamental shifts in regulation, competition, and adoption patterns. BRN's recent comprehensive analysis of the stablecoin ecosystem examines five critical developments shaping the stablecoin market, including regulatory breakthroughs, competitive dynamics between USDC and USDT, traditional finance integration strategies, Asia's leadership in adoption, and emerging market dependencies on dollar-pegged digital assets.
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