Internet-Age Banking Firm, Dakota, Secures $12.5M in Series A Funding, Led by CoinFund
Dakota, a pioneering business banking platform that seamlessly integrates cryptocurrency, has announced a successful Series A funding round of $12.5 million. The funding was led by CoinFund, with participation from 6th Man Ventures (6MV) and Triton Ventures, the venture arm of Kraken. Digital Currency Group also contributed to the round, marking a significant step forward for Dakota.
Since its launch in 2023, Dakota has made impressive strides, amassing over 500 business customers, the majority of which are based outside the U.S. The platform processes approximately $1.6 billion in annual transaction volume, a figure projected to reach $4 billion by the end of 2025.
Dakota's unique selling point lies in its ability to allow businesses to hold and transfer funds in USD or stablecoins, using familiar payment rails such as ACH, Fedwire, SWIFT, and SEPA, but with faster, blockchain-enabled settlement. The company ensures customer funds are fully reserved and under the client's control, backed by U.S. Treasuries to reduce counterparty and liquidity risks.
The platform's mission is to provide a globally accessible business bank account that combines speed, transparency, and security for borderless finance. With the Series A funds, Dakota plans to expand its global reach to over 100 countries, add products like corporate cards and support for more international payment networks to simplify cross-border transactions, and capitalise on favourable stablecoin legislation developments in the U.S. and worldwide to fuel growth.
Dakota positions itself as a first-mover in bridging traditional finance and crypto by offering Dollar-denominated accounts accessible globally, a move that could prove particularly valuable for businesses outside the U.S. Clients can send or receive payments via regular bank accounts without handling crypto directly, as Dakota seamlessly converts funds to and from stablecoins behind the scenes.
The platform's founding team boasts veterans from Coinbase, Square, and Airbnb, bringing a wealth of experience in safeguarding over $100 billion in digital assets and scaling consumer platforms to millions of users. Dakota's leadership is focusing on execution, growing its customer base, securing more banking partnerships, and continuing to invest in compliance and regulatory efforts.
As major incumbents like Payments giant Stripe and PayPal start to take notice and make moves in the stablecoin market, Dakota's vision is that in a few years, startups will routinely hold dollars on-chain and send payments worldwide in seconds, as easily as sending an email. With its Series A funding, Dakota is well-positioned to lead this shift and become a key player in the future of global business finance.
[1] Dakota (2023). Dakota Raises $12.5 Million in Series A Funding to Expand Crypto-Integrated Business Banking Ecosystem. Press Release. [2] CoinDesk (2023). Dakota, a Crypto-Integrated Business Banking Platform, Raises $12.5 Million in Series A Funding. Article. [3] TechCrunch (2023). Dakota Raises $12.5 Million for Crypto-Integrated Business Banking. Article. [4] Fortune (2023). Dakota Secures $12.5 Million in Series A Funding to Expand Crypto-Integrated Business Banking. Article.
- The Series A funding of $12.5 million will enable Dakota to capitalize on favorable stablecoin legislation developments and expand its services to over 100 countries, providing businesses with a globally accessible bank account that combines speed, transparency, and security for borderless finance, utilizing compliance-focused technology and blockchain-enabled settlement.
- As Dakota continues to grow its customer base and secure more banking partnerships, it aims to simplify cross-border transactions by adding products like corporate cards and support for more international payment networks, further bridging the gap between traditional finance and cryptocurrency, and positioning itself as a key player in the future of global business finance.
