Dakota Stablecoin Bank, founded by former Coinbase executive Ryan Bozarth, announced it has raised $12.5 million in Series A funding to develop its stablecoin-based services.
Funding and Its Goals
The funding, raised from investors such as CoinFund, 6th Man Ventures, and Kraken's Triton Ventures, strengthens Dakota's position in the fintech industry. The funds will be directed towards integrating stablecoin transfers with traditional banking frameworks.
Dakota's Business Model
According to Ryan Bozarth, CEO of Dakota, "Dakota facilitates fund transfers through stablecoins, providing banking-like account services for businesses and individuals. Its business model combines traditional banking functions with blockchain technology, primarily serving overseas corporate clients in non-crypto sectors."
Market Prospects for Stablecoins
Though not a fully licensed bank, the company operates as a registered money services business across the U.S. and Europe. Dakota aims to process $4 billion in transactions by 2025. Analysts speculate that Dakota's approach may lead to broader adoption of stablecoin and fintech solutions across sectors.
Such funding could establish Dakota as an important player in the stablecoin market, enhancing access to financial services on a global scale, although no significant changes have been reported in major cryptocurrencies.
