What Did Rain Raise, and Where Is the Capital Going?

Stablecoin infrastructure firm Rain said it raised $250 million in a Series C funding round led by ICONIQ, pushing the company’s valuation to $1.95 billion. The raise brings Rain’s total funding to $338 million, following a $58 million Series B round in August 2025 and a $24.5 million raise earlier that year.

Rain said the new capital will be used to secure licenses and expand operations across North America, South America, Europe, Asia, and Africa. The company focuses on building compliant infrastructure that allows stablecoins to be issued, stored, and spent through familiar payment channels rather than crypto-native interfaces alone.

The firm currently supports Visa-linked stablecoin cards in more than 150 countries and is working on integrations with the U.S. ACH network and Europe’s SEPA system through partner banks, according to Bloomberg. These integrations would allow stablecoin balances to move more easily between traditional banking rails and digital wallets.

Investor Takeaway

Rain’s funding round highlights growing investor interest in the infrastructure layer of stablecoins, not just issuers. Cards, wallets, and bank integrations are becoming core distribution points.

Why Are Stablecoin Payment Rails Attracting Capital?

Stablecoins have shifted from a trading tool into a settlement layer used by consumers, fintechs, and enterprises. Their appeal lies in speed, availability, and predictability, particularly for cross-border payments where traditional systems remain slow and expensive.

Rain’s business model targets this gap. Rather than issuing its own stablecoin, the company provides the plumbing that lets enterprises launch compliant card programs, wallets, and payment flows backed by existing stablecoins. According to the company, it now supports more than 200 partners and processes over $3 billion in annualized transaction volume.

Those partners include payment firms and consumer-facing platforms that want to offer stablecoin spending without building compliance, card issuance, or banking relationships from scratch. Rain says its programs support both everyday purchases and enterprise payments while staying within regulatory requirements.

The firm said demand has accelerated sharply. Over the past year, Rain’s active card base increased 30-fold, while annualized payment volume grew 38-fold. Chief executive Farooq Malik described the expansion as early-stage, even with those growth rates.

“Stablecoins are quickly becoming the way money moves in the 21st century, but adoption by users worldwide requires cards and apps that just work,” Malik said. “This funding lets us bring that infrastructure to new markets and help additional enterprises go live and scale quickly everywhere.”

How Big Is the Stablecoin Market Today?

Rain’s expansion comes as stablecoins continue to grow as a category. Total stablecoin supply now exceeds $290 billion, according to data compiled by The Block. Tether’s USDT remains the largest token, with more than $186 billion in circulation, accounting for roughly two-thirds of the market. Circle’s USDC follows with close to $75 billion outstanding.

The scale of supply reflects how widely stablecoins are used for settlement, remittances, and liquidity management. In many regions, they function as a de facto dollar layer where access to U.S. banking is limited or costly. That same utility has drawn interest from payments firms, banks, and card networks exploring ways to integrate stablecoins into existing infrastructure.

Rain’s focus on Visa-linked cards and bank transfers places it at the intersection of crypto and traditional finance. By keeping merchants and counterparties on fiat rails while users transact with stablecoins, the company avoids forcing adoption on either side.

Investor Takeaway

As stablecoin supply grows, infrastructure providers that handle compliance, cards, and bank access may capture steady volume regardless of which stablecoins dominate.

What Risks Come With Stablecoin Growth?

The same features that make stablecoins attractive for fast settlement also create challenges. Blockchain analytics firm Chainalysis estimates that stablecoins accounted for 84% of illicit crypto transaction volume in 2025, even as overall illicit activity declined. That exposure keeps regulators focused on compliance, monitoring, and controls around stablecoin use.

For infrastructure firms like Rain, regulatory execution is central. Card programs, wallets, and payment flows must meet anti-money-laundering and sanctions requirements while operating across multiple jurisdictions. Expansion into new regions will depend on licensing outcomes and partnerships with local banks.

Still, the funding round suggests investors see durable demand for stablecoin rails, particularly as payments move toward always-on, cross-border systems. Whether stablecoins continue to scale through cards and bank transfers or through new settlement models, the need for compliant infrastructure is becoming harder to ignore.

Rain’s latest raise places it among a growing group of companies betting that the future of money movement will rely less on bespoke crypto interfaces and more on stablecoins flowing through familiar payment channels.