- Raised $12.5 million in Series A equity funding led by CoinFund
- Founded by Coinbase executive Ryan Bozarth
- Processed $1.6 billion in transaction volume and on pace for $4 billion by December
Dakota, a neobank blending traditional banking with digital assets, has captured investor attention by securing $12.5 million in Series A funding led by CoinFund. Co-founded by former Coinbase executive Ryan Bozarth, the startup leverages stablecoins to accelerate cross-border payments and reduce transaction fees. With backing from 6th Man Ventures, Digital Currency Group, and Triton Ventures, Dakota’s equity-only raise highlights a growing appetite for fintech solutions that integrate blockchain technology and conventional banking services.
How a Coinbase executive pioneered a neobank model
Ryan Bozarth, a Coinbase executive who formerly managed Coinbase’s custody arm, left the exchange in 2022 to launch Dakota. Drawing on his experience at Sony, Square, and Airbnb, he recognized a gap in the market for a banking platform that serves both crypto-native businesses and traditional enterprises. Dakota’s value proposition hinges on using stablecoins—tokens pegged to fiat currencies like the U.S. dollar—to move funds between its checking accounts and partner banks. This architecture allows Dakota to offer users real-time settlement, lower fees, and access to U.S. dollar-denominated accounts without holding a bank charter.
Series A funding underscores stablecoin growth
In the seven days ending July 13, Dakota announced its Series A funding round of $12.5 million, marking one of the most significant equity-only investments in Web3 payments this year. CoinFund led the round, joined by industry stalwarts such as Digital Currency Group and Kraken’s venture arm, Triton Ventures. Alex Felix, CIO at CoinFund, praised Dakota for capturing a substantial share of non-crypto customers—a testament to the startup’s dual appeal. This infusion of capital follows major transactions in the stablecoin sector, including Stripe’s $1.1 billion acquisition of Bridge and the Senate’s passage of the GENIUS Act to regulate token-based payments.
Dakota’s stablecoin-powered banking infrastructure
Dakota operates under U.S. and European money services business regulations, partnering with established banks for custodial functions. Customers deposit fiat, which is tokenized into stablecoins for transfers. Once the transaction reaches its destination, stablecoins are redeemed back into fiat, completing the settlement cycle. Over the past 12 months, Dakota processed nearly $1.6 billion in transaction volume and projects to hit $4 billion by December. This trajectory reflects strong demand for rapid, cost-effective cross-border transfers, particularly among businesses outside the United States seeking U.S.-style banking services.
Global adoption driven by stablecoins
More than 500 businesses across 30 countries now rely on Dakota’s platform. For many enterprises, a U.S. dollar account translates into price stability, simplified accounting, and access to global markets. By contrast, traditional wire transfers can take several days and incur fees that erode margins. Dakota’s model enables near-instant liquidity, which is critical for e‑commerce merchants, SaaS providers, and remittance services. As stablecoins gain regulatory clarity, neobanks that integrate digital assets stand to capture market share from legacy financial institutions.
visionary insights from the Coinbase executive co-founder
Bozarth emphasizes that the future of banking lies in interoperability between fiat and crypto rails. “We’re pioneering technology that bridges two corners of finance,” he explains, pointing to Dakota’s backend integrations with blockchain networks and correspondent banks. The Coinbase executive turned entrepreneur believes stablecoins will become the backbone of global payments, offering both compliance and efficiency. His vision aligns with growing institutional interest: fintech giants and regulators alike are exploring frameworks to harness tokenized assets for mainstream use.
Conclusion
Dakota’s blend of stablecoins and traditional banking functions demonstrates the potential for digital assets to reshape financial services. With $12.5 million in Series A funding, nearly $1.6 billion processed in a single year, and traction among over 500 businesses, the neobank spearheaded by a former Coinbase executive is poised for rapid growth. As regulatory progress accelerates and adoption expands, Dakota’s model may become a blueprint for the next generation of global banking solutions.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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