Stablecoin Firm Rain Valued at $1.95 Billion After $250 Million Funding Round

Stablecoin payments firm Rain has raised $250 million in a funding round that values the company at $1.95 billion. The round was led by ICONIQ, with participation from Sapphire Ventures, Dragonfly, Bessemer, Lightspeed, and Galaxy Ventures. This brings the company's total funding to over $338 million.

Rain's CEO, Farooq Malik, said the capital will be used to expand into markets across North and South America, Europe, Asia, and Africa. The company also plans to adapt to evolving regulatory frameworks in these regions.

Rain's infrastructure enables clients to launch stablecoin cards on the Visa network. These cards allow users to spend stablecoins at local merchants and withdraw cash at ATMs. The company currently issues cards in over 150 countries.

Why Did This Happen?

The growing demand for stablecoin infrastructure has attracted significant investment. Malik noted that many markets are now developing regulations for blockchain, custody, and stablecoin systems. The funding gives Rain more resources to engage with regulators and obtain licenses as it expands globally.

Rain's valuation has increased more than 17 times in just 10 months. The funding brings total capital raised to over $338 million and positions the company for further growth.

How Did Markets React?

The stablecoin market has grown rapidly, with Rain positioned to benefit from the increasing adoption of tokenized money. The company's active card base has grown 30x in the past year, and its annualized payment volume has increased 38x.

Rain's infrastructure supports more than $3 billion in annualized transactions for over 200 partners, including Western Union, Nuvei, and KAST. The firm's technology allows enterprises to move, store, and use stablecoins instantly and compliantly.

What Are Analysts Watching Next?

Rain's expansion plans include strategic acquisitions. In the past year, the company acquired rewards platform Uptop and currency conversion platform Fern. It may pursue further acquisitions to deepen its platform capabilities.

The company also plans to connect to additional payment systems, including the US-based ACH and Europe's SEPA through partner financial institutions. This integration will help Rain's partners offer seamless, compliant solutions worldwide.

Rain's growth reflects broader trends in stablecoin adoption. As more businesses and consumers seek alternatives to traditional banking systems, stablecoin infrastructure is becoming increasingly important. Institutional investors like ICONIQ and Galaxy Ventures are showing strong confidence in this space.

Rain's legal advisors for the funding round included Wachtell, Lipton, Rosen & Katz. The firm continues to build a global presence and works to ensure compliance with the latest regulatory requirements.