Rain Raises $58 Million for Stablecoin Innovations

Rain, a startup specializing in Visa debit and credit cards, announced on Thursday that it has raised $58 million in a Series B funding round led by Sapphire Ventures. Samsung Next, Dragonfly, Galaxy Ventures, Endeavor Catalyst, Lightspeed, and Norwest also contributed. This new funding follows a previous $24.5 million round in March, bringing Rain's total funding to $88.5 million. The firm provides 'enterprise-grade infrastructure for stablecoin-powered payments,' targeting fintechs, banks, and marketplaces interested in developing 'stablecoin cards, wallets, and payment solutions.' Rain believes the interest in stablecoins has surged due to the passage of the GENIUS Act in the U.S. and the MiCA framework in Europe, which have established clearer regulatory guidelines for their adoption. With predictions that stablecoins could become a significant growth sector in the crypto market, major U.S. banks, including Bank of America, are exploring their own stablecoin solutions now that regulatory clarity has emerged. As of now, Tether's USDT is the dominant stablecoin, boasting over $167 billion in circulation, followed by USDC from Circle. Rain aims to facilitate the use of stablecoins in everyday transactions by integrating them with Visa's global network, allowing users to spend stablecoins in stores globally. Jai Das, President and Partner at Sapphire Ventures and a member of Rain's board, stated that Rain's offerings will improve access to stablecoins in commerce. Rain's credit and debit cards can be used anywhere Visa is accepted, and the company's transaction volume has reportedly increased tenfold since January. Competitors like MetaMask are also entering the stablecoin payment arena, with plans to enable spending at Mastercard merchants by year-end. Disclaimer: The Block is an independent media organization that provides news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block and also invests in other companies in the cryptocurrency sector. The Block maintains its independence to provide objective and timely information about the industry. This article is for informational purposes and does not constitute legal, investment, or financial advice.