a16z-Backed Lead Bank Raises $70M Series B as Crypto Banking Infrastructure Demand Surges

Lead Bank closed a $70 million Series B funding round, reaching a $1.47 billion valuation as demand grows for compliant banking infrastructure serving cryptocurrency and fintech companies navigating complex regulatory requirements.

The Kansas City-based bank attracted new investors ICONIQ and Greycroft alongside existing backers Ribbit Capital, Coatue, Khosla Ventures, Andreessen Horowitz, and Zeev Ventures, Lead said in a statement on Thursday. The funding reflects investor confidence in specialized banking services for digital asset businesses facing traditional banking restrictions.

Lead Bank operates as a state-chartered institution, providing both banking-as-a-service solutions and traditional business and personal banking services across the United States. The dual model allows the bank to serve both innovative financial technology companies and conventional banking customers.

The Series B funding will likely support continued expansion of Lead Bank's technology infrastructure and compliance capabilities as crypto adoption accelerates among enterprises. The bank's positioning as a bridge between traditional banking and digital assets appears increasingly valuable as mainstream adoption grows.

CEO Jackie Reses, who led the management team's 2022 acquisition of Lead Bank for $56 million, emphasized the institution's "technology-first approach" to serving fast-growing fintechs without compromising risk management or compliance standards.

Lead Bank's banking-as-a-service platform has secured partnerships with major industry players, including powering Stripe and Visa's stablecoin-linked payment card platform launched in April. The bank also partnered with workplace payments platform Branch, whose clients include Uber and Instacart, expanding its reach across fintech verticals.

The institution said in a LinkedIn post that has scaled rapidly since the management buyout, growing assets to $3 billion while nearly tripling staff to over 300 employees across engineering, compliance, and banking operations.

Lead Bank's client roster includes prominent crypto and fintech companies such as Affirm, Ramp, Stripe, and Bridge.