Stablecoin Firm Rain Valued at $1.95 Billion After Funding Round

Stablecoin payments firm Rain raised $250 million in a recent funding round, valuing the company at $1.95 billion. The round was led by ICONIQ and included participation from Sapphire Ventures, Dragonfly, Bessemer, Lightspeed, and Galaxy Ventures. The investment brings Rain's total funding to more than $338 million.

The capital will be used to expand Rain's presence in North and South America, Europe, Asia, and Africa. It will also help the firm adapt to evolving global regulatory environments. Rain's co-founder and CEO, Farooq Malik, emphasized the importance of engaging with regulators to secure licenses as part of the company's global expansion.

The firm currently issues stablecoin cards in over 150 countries and helps clients launch stablecoin cards on the Visa network. These cards allow users to spend stablecoins at local merchants and withdraw cash at ATMs. They are also used by stablecoin-powered startups offering bank-like services in countries with unstable national currencies.

Why the Move Happened

Rain's expansion plans may include strategic acquisitions. In the past year, the company acquired Uptop and Fern, a rewards platform and a currency conversion platform, respectively.

The company is also working on connecting to additional payment systems, including the U.S. ACH and Europe's SEPA, through partner financial institutions. Malik said the funding will support these initiatives and deepen Rain's partnerships.

How Markets Responded

The funding round highlights growing investor confidence in stablecoin infrastructure and payments solutions. Stablecoins have seen increased adoption as a tool for cross-border transactions and financial services in emerging markets.

The broader stablecoin market is expanding rapidly. Total stablecoin transaction volumes reached $33 trillion in 2025, driven by regulatory clarity and pro-crypto policies in the U.S. and other regions. USDC and USDT accounted for the majority of this activity, with $18.3 trillion and $13.3 trillion in transactions, respectively.

What Analysts Are Watching

The global regulatory environment for stablecoins is evolving. Several countries, including Canada, the U.K., and South Korea, are working on stablecoin frameworks in 2026. South Korea, for example, plans to finalize its digital asset phase 2 legislation in Q1 2026, which will establish clear rules for stablecoin issuance.

Analysts are also watching how institutional adoption of stablecoins progresses. Western Union and MoneyGram are among the companies exploring stablecoin-based solutions for faster cross-border payments.

Bloomberg Intelligence forecasts that stablecoin payment flows could reach $56.6 trillion by 2030. This projection underscores the potential of stablecoins as a major financial tool in the coming years.