Digital bank Facet has raised $51 million to expand its stablecoin-powered banking platform. This is the latest sign that fintech companies are increasingly building financial services on blockchain rails rather than traditional payment networks.
The Los Angeles-based company announced Thursday that its Series B round includes participation from investors including Japan’s SBI Group, Investcorp, and Turkish asset manager Arts Portofoy. The company did not disclose the valuation at the time the investment was made.
The startup operates a banking and payments platform across more than 50 corridors in Asia, Africa, and the Middle East, and uses stablecoins to move funds across borders faster and at lower cost than traditional banking systems.
Facet said it plans to use the funding to expand into new markets, develop small business lending and trade finance products, and grow what it calls its “own network,” its own infrastructure for stablecoin payments and storage.
The company is part of a broader wave of fintechs and neobanks rebuilding financial services on top of blockchain networks and dollar-backed stablecoins. For example, business banking startup Slash raised $100 million in an investment round last month that valued the company at $1.4 billion. The company develops stablecoin-based payment products and launched the stablecoin with Stripe’s Bridge to reduce payment delays and foreign exchange costs for global businesses.
Stablecoins have become one of the fastest growing areas of cryptocurrencies, and are increasingly seen as an alternative means of money transfer, financial management, and international commerce. Proponents argue that blockchain-based payments can reduce reliance on correspondent banking networks, which often make cross-border payments slow and expensive, especially in emerging markets.
Facet said its platform currently processes more than $32 billion in annual transaction volume in 125 countries and serves more than 1,000 small and medium-sized businesses. The company recently partnered with USDT issuer Tether to launch what it describes as a gold-backed neobanking card tied to tokenized assets.
“We are building Fasset for a world where money can move across borders as easily as information,” said Mohammad Raafi Hossain, CEO and co-founder of Fasset. “This funding round strengthens our ability to build regulated banking services and expand into new markets where our services are most needed.”
