New York-based fintech startup Dakota has raised $12.5 million in a Series A funding round to expand its innovative crypto-integrated business banking platform. The round was led by CoinFund, with additional participation from 6th Man Ventures and Triton Ventures. The company plans to use the capital to broaden its product suite and extend its services to new international markets.
Blending Traditional Banking with Blockchain
Founded in 2023, Dakota enables businesses to hold and transfer funds in both US dollars and stablecoins. The platform supports standard payment systems such as ACH, Fedwire, SWIFT and SEPA, allowing users to access familiar financial infrastructure. What sets Dakota apart is its use of blockchain technology behind the scenes, which allows for near-instant, verifiable transfers.
By integrating stablecoins — digital currencies pegged to assets like the US dollar — Dakota delivers a faster and more cost-efficient alternative to conventional banking, especially for cross-border payments. These transfers are settled almost instantly on blockchain networks, offering businesses improved speed, transparency and control over their funds.
A Strong Foundation and Growing Demand
Since its launch, Dakota has attracted over 500 business customers and processed billions of dollars in annualised transaction volume. The startup was founded by professionals with experience at leading tech and fintech firms including Coinbase, Square and Airbnb. It ensures that all customer deposits are fully reserved and backed one-to-one by short-term US Treasuries, aiming to eliminate both liquidity and counterparty risks.
This approach resonates with businesses seeking both the innovation of crypto solutions and the reliability of traditional banking. Dakota positions itself as a secure and regulation-friendly option in the evolving landscape of digital finance.
Global Expansion on the Horizon
With the fresh funding, Dakota plans to expand its services to more than 100 countries. The targeted regions include the United Kingdom, the European Union, Singapore and several parts of Latin America. This move aligns with the company’s vision of making US dollar banking accessible to entrepreneurs worldwide, regardless of their geographic location.
CEO Ryan Bozarth highlighted the borderless nature of modern business, noting the growing demand for global banking services that cater to startups and small enterprises in cities like Bogotá, Bangalore and beyond. He aims to offer these businesses the same level of service and financial flexibility currently enjoyed in major financial hubs like San Francisco.
The Rise of Stablecoins in Mainstream Finance
Dakota’s model reflects a broader trend of stablecoin integration into traditional financial systems. These digital currencies are gaining traction for their utility in reducing transaction costs and processing times, particularly in cross-border payments. Regulatory developments, such as the GENIUS Act recently passed by the US Senate, are further accelerating the adoption of stablecoins.
As regulations evolve and demand for faster global payments grows, Dakota’s hybrid model of combining traditional banking rails with crypto infrastructure positions it well for long-term success.
