Rain, a startup focused on stablecoin Visa debit and credit card issuance, has successfully raised $24.5 million in their most recent funding round. This investment will allow Rain to improve their spending options related to stablecoins, as well as accelerate their growth. The funding round’s primary investor was Norwest Venture Partners, alongside other contributors Galaxy Digital, Coinbase Ventures, and CompoSecure.
Spendable Stablecoin Visa Cards
As with most fintech companies, Rain’s focus lies within consumer spending. Their primary goal is addressing the need for everyday digital transactions using stablecoins, comprised of shifting digital assets. Currently, the issuance of visa cards tethered to digital assets would allow traditional points of sale to accept stablecoins, thereby bridging the gap between the two worlds. Increasing Stablecoin Adoption
Rain’s announcement has drawn attention to the wider adoption of stablecoins around the world. These digital assets, which aim to keep their value stable, are being put to good use, such as for remittances, cross-border payments, and for holding monetary value in the form of dollars digitally. The increased adoption indicates a growing demand in the market that stablecoins, unlike cryptocurrencies, can provide more stability and functionality.
Growth and Global Reach
Rain is claiming to have reported significant business growth within the past year, which suggests an increased market need for their stablecoin-enabled card solutions. The firm has stated it achieved remarkable revenue growth of 15 times in the last year alone. Moreover, Rain claims to have the capacity to make payments in more than 100 countries. These figures indicate a developing global market demand to service stablecoin payment networks with traditional payment systems to enable cross-border commercial transactions.
Larger Trend In The Market
The stablecoin market, along with Rain’s focus, is supportive of a wider trend within Web3 companies. Many industry players are working to improve the effortless spendability of digital assets by consumers and their integration into merchant systems. Recent research underscores the scope of action in the stablecoin corridors of commerce, noting the surpassing of the combined transaction volumes of credit giants Visa and Mastercard in stablecoin transfers last year. This figure accentuates the increasing economic activity and volume of transactions happening within the stablecoin economy itself.
Plans for Expansion & Technology
Along with the funding announcement, Rain noted a firm commitment to geographic expansion. The company plans to utilize its Visa Principal Membership, which connects directly to Visa’s global payment network, and its proprietary blockchain infrastructure. Renowned and respected within the industry, this infrastructure would allow Rain to hasten the issuance of stablecoin-enabled Visa cards on a more elevated scale. To provide more accelerated payment options for consumers, stablecoins would be used for transactions to streamline processes.
Investment Surge in Payments
Rain received $24.5 million in funding during a time that coincides with an investment frenzy in the crypto payments niche. This shows Rubanada’s confidence in firms constructing the payment frameworks for digital assets. Earlier this month, the crypto payment processor RedotPay received $40 million in funding. Merchant crypto asset transaction facilitator Mesh also raised $82 million. These cases serve to highlight the growing investments targeted towards facilitating the use of digital assets as currency within the global economy.
