Dakota Raises $12.5 Million to Expand Borderless Banking Services

Dakota, a crypto-integrated banking platform, has successfully raised $12.5 million in a Series A funding round. This investment was led by CoinFund, with additional support from 6th Man Ventures and Triton Ventures. The funds will be used to expand Dakota's borderless banking services, which allow businesses to hold and transfer funds in U.S. dollars or stablecoins using blockchain technology for near-instant transfers.

Stablecoins, which are cryptocurrencies tied to an external asset such as the U.S. dollar, are increasingly being integrated into traditional financial systems. This trend is driven by the potential for cheaper and faster cross-border payments. The advancement of stablecoin regulation in the U.S. is also contributing to this growth, with legislative proposals like the GENIUS Act already passed by the Senate and awaiting a vote in the House.

Dakota's platform enables businesses to manage their funds in U.S. dollars or stablecoins while utilizing traditional payment networks like ACH, SWIFT, and SEPA. This allows businesses to send and receive payments through regular bank accounts without directly handling cryptocurrency. Behind the scenes, Dakota uses blockchain technology to settle transfers almost instantly, providing an alternative to conventional banking methods.

The startup, founded by alumni from prominent companies such as Coinbase, Square, and Airbnb, ensures that customer deposits are fully reserved and backed 1:1 by short-term U.S. Treasuries. This approach aims to eliminate liquidity and counterparty risks, offering a secure and reliable banking solution for businesses.

With the new funding, Dakota is set to expand its services to over 100 countries, including key regions such as the UK, European Union, Singapore, and parts of Latin America. This global expansion aligns with the company's mission to provide entrepreneurs worldwide with access to U.S. dollar banking, regardless of their location. Dakota's CEO, Ryan Bozarth, emphasized the borderless nature of modern business and the universal appeal of the U.S. dollar, aiming to offer the same banking advantages to entrepreneurs in regions like Bogotá and Bangalore as those in San Francisco.