Rain Raises $58 Million to Expand Stablecoin Payment Infrastructure and Speed Up Global Adoption
The Stablecoin Infrastructure Wars: Rain’s $58M Bet on the Future of Global Payments
NEW YORK — In just five months, Rain has positioned itself at the center of what many call the defining infrastructure battle in digital finance: who will control the rails that turn stablecoins from speculative tools into the backbone of global commerce.
Today, the enterprise-grade payments platform announced a $58 million Series B funding round led by Sapphire Ventures, bringing total funding to $88.5 million. With regulatory clarity driving unprecedented institutional interest, Rain now sits at the heart of a rapidly consolidating market — one where stablecoin-powered payment systems are moving from fringe experiments to mainstream financial infrastructure.
The company’s growth tells the story. Since January, transaction volumes have surged 10x, and Rain now powers access to 1.5 billion people worldwide through a single integration. This trajectory mirrors a broader shift among traditional financial institutions, which are increasingly embracing digital asset infrastructure. The timing couldn’t be better: with the U.S. GENIUS Act and Europe’s MiCA framework eliminating regulatory uncertainty, analysts believe we’re entering the first true wave of enterprise stablecoin adoption.
The Battle for Payment Settlement Supremacy
Rain holds a distinctive position in the fast-growing world of stablecoin infrastructure. As a Visa Principal Member, the company processes 100% of its card payment volume directly in stablecoins over Visa’s network — a capability that sets it apart from competitors still adapting traditional fiat rails for digital assets.
Stablecoins are a type of cryptocurrency designed to maintain a stable value, minimizing the price volatility common in other digital assets. They achieve this by being pegged to more stable assets like fiat currencies, commodities, or even other cryptocurrencies, and come in various forms such as fiat-backed, crypto-backed, and algorithmic.
This technical edge matters. While Circle’s USDC, Stripe’s $1.1 billion acquisition Bridge, and other emerging players aim to drive broad stablecoin adoption, Rain has focused on solving a critical “last-mile” problem: making stablecoins instantly usable anywhere payment cards are accepted.
Rain’s platform covers the entire stablecoin lifecycle — deposits, storage, spending, and withdrawals — all through a single API. That API allows partners to launch compliant payment programs across 150+ countries. Clients like Nuvei, Avalanche, Dakota, and Nomad rely on Rain’s infrastructure for use cases ranging from merchant payouts to cross-border payroll.
But Rain is far from alone. Competition is fierce:
- Bridge + Stripe now reach millions of merchants worldwide.
- MoonPay + Mastercard enable virtual card issuance at 150 million merchant locations.
- Circle, as the dominant stablecoin issuer, commands liquidity advantages that pure infrastructure players can’t easily match.
Market share of major stablecoins, highlighting the dominance of USDT and USDC, which Circle issues.
| Stablecoin | Issuer | Market Capitalization (USD) | Market Share (%) |
|---|---|---|---|
| Tether (USDT) | Tether Limited | $172.8 billion | 60.00% |
| USDC (USDC) | Circle | $73.44 billion | 25.50% |
| Dai (DAI) | MakerDAO | $5.37 billion | 1.86% |
| Ethena USDe (USDe) | Ethena Labs | $5.33 billion | 1.85% |
| First Digital USD (FDUSD) | First Digital Labs | $1.45 billion | 0.50% |
Regulatory Tailwinds Accelerate Adoption
Rain’s timing aligns perfectly with sweeping regulatory changes that have reshaped enterprise risk calculations around stablecoin adoption.
- In the U.S., the GENIUS Act establishes federal standards for payment stablecoins, requiring 100% reserve backing.
- In Europe, the MiCA framework creates clear compliance pathways for institutional adoption.
The GENIUS Act is a proposed US federal legislation aimed at establishing a regulatory framework for stablecoins. In contrast, the MiCA framework is the European Union's comprehensive regulation for crypto-assets, including stablecoins. Both initiatives address the need for stablecoin oversight but represent the distinct regulatory approaches of the US and EU, respectively.
By removing legal uncertainty, these frameworks have unlocked demand among major financial institutions, which are now exploring stablecoin integrations for treasury operations, cross-border payments, and customer-facing services.
The operational benefits are equally compelling. Unlike traditional payment networks — which rely on multi-day settlement cycles and complex correspondent banking relationships — stablecoin payments settle instantly, with full transparency and lower counterparty risk. For global marketplaces and fintech platforms, this translates into:
- Faster cross-border transactions
- Lower operational costs
- Access to programmable money features like automated payment flows and real-time revenue recognition
Market Dynamics and Competitive Positioning
Rain’s growth comes amid a wave of industry consolidation. Stripe’s billion-dollar Bridge acquisition signals that stablecoin rails are becoming essential financial infrastructure, while players like Paxos are expanding globally to capitalize on regulatory shifts.
The competitive landscape reflects divergent strategies:
- Circle leverages its role as USDC’s issuer to build end-to-end payment networks.
- BVNK focuses on B2B payment flows, claiming $12B in annualized volumes.
- PayPal has entered the stablecoin space, using its massive fintech distribution to scale adoption quickly.
Rain’s strategy, by contrast, hinges on technical differentiation. By offering native stablecoin settlement and comprehensive compliance infrastructure, Rain positions itself as the platform of choice for institutions that prioritize security, regulatory readiness, and enterprise-grade reliability. The company’s certifications — including PCI DSS and SOC 2 — along with audited smart contracts, make it particularly attractive to enterprise customers.
Still, analysts caution that distribution networks may decide the winners. Companies with large merchant ecosystems, strong developer communities, and existing financial institution partnerships will enjoy a significant edge in customer acquisition and retention.
Financial Performance and Growth Metrics
Rain’s 10x transaction volume growth in 2025 reflects the broader institutional shift toward stablecoin payments. While the company hasn’t disclosed absolute transaction volumes or revenue, its rapid funding cadence — closing a Series B just five months after Series A — underscores investor confidence.
The Series B round provides more than capital. Sapphire Ventures, the lead investor, offers deep enterprise software expertise and strategic synergies with portfolio companies. Other participants, including Galaxy Ventures and Samsung Next, bring blockchain infrastructure experience and potential partnership opportunities.
Rain’s revenue model centers on:
- Interchange fee sharing
- Program management fees
- Foreign exchange spreads
Payment platforms generate revenue primarily through transaction-based fees, which often include a markup on the interchange fees paid by merchants to card-issuing banks. They also profit from foreign exchange spreads on international transactions and may charge for various value-added services.
Unlike stablecoin issuers that profit from reserve asset yields, Rain’s economics rely on transaction volume growth and fee optimization, driving aggressive market expansion.
Industry benchmarks suggest successful payment infrastructure companies can achieve gross margins above 150 basis points, with scalability hinging on automation and regulatory efficiency. Rain’s heavy compliance investments could give it a long-term edge as regulatory requirements tighten across the industry.
Strategic Implications for Digital Finance
Rain’s latest funding lands at a pivotal moment for digital finance infrastructure. Regulatory clarity and institutional demand are converging, creating new opportunities — but also new risks.
To succeed, Rain must maintain its technical advantage while competing against well-funded rivals with global distribution networks. Its future depends on execution speed, strong partnerships, and the ability to stay ahead of regulatory and technological shifts.
Beyond Rain, these developments raise larger questions about the future of financial infrastructure. Stablecoin rails represent a parallel payment system — one with different operational models, regulatory frameworks, and economic incentives than traditional banking.
For institutional investors, Rain’s trajectory highlights key themes shaping the industry:
- Compliance as a competitive differentiator
- The growing value of native digital asset infrastructure over retrofitted legacy systems
- Increasing market concentration among platforms offering end-to-end services
Investment Landscape and Forward-Looking Outlook
Venture capital is pouring into stablecoin infrastructure, driving multi-billion-dollar valuations across the sector. This capital intensity reflects both the technical complexity of building compliant, global payment systems and the winner-take-all dynamics that often define payment networks.
Chart showing the growth of venture capital funding into blockchain and crypto infrastructure companies over the last five years.
| Year | VC Funding to Blockchain & Crypto Infrastructure (USD Billions) |
|---|---|
| 2021 | 33.0 (Total Blockchain Startups) |
| 2022 | N/A |
| 2023 | 3.5 (Estimated Infrastructure) |
| 2024 | 5.5 (Infrastructure) |
| 2025 | 0.5 (Q1 2025 Infrastructure) |
Analysts expect consolidation to accelerate as enterprise adoption scales and regulatory frameworks mature. Companies with strong technical capabilities, robust compliance infrastructure, and deep partnership ecosystems are best positioned for long-term success.
For investors, the key performance indicators remain:
- Transaction volume growth
- Customer acquisition costs
- Compliance readiness
- Ecosystem development
Rain’s Series B signals more than company growth — it’s evidence that stablecoin payment infrastructure has reached commercial viability. As Rain expands into Europe, the Middle East, Africa, and Asia-Pacific, its ability to scale globally while maintaining regulatory compliance will be closely watched.
As stablecoins continue reshaping global payments, the lines between legacy financial infrastructure and native digital platforms are blurring. The outcome of this infrastructure war may determine who controls the future of money.
House Investment Thesis
| Aspect | Analysis & Key Points |
|---|---|
| Company (Rain) | An infrastructure specialist for stablecoin-native cards and payout rails. Core product is an API platform for money-in, storage, spending, and money-out, with multi-chain support. Key differentiator is being a Visa Principal Member, enabling 100% stablecoin settlement for card programs. |
| Traction Signals | Strong: $58M Series B shortly after Series A; claims of 10x volume growth in 2025; millions of transactions across 150+ countries; credible partners (Avalanche, etc.). However, the base for growth and key metrics (GPV, fraud ratios, margins) are undisclosed. Verdict: Promising, not yet proven at scale. |
| Market Window | Open and de-risked due to regulatory clarity (U.S. GENIUS Act, EU's MiCA) and card network adoption (Visa/Mastercard actively piloting stablecoin settlements). Demand is real, especially for B2B payouts and cards, but the battle is over who controls the margin stack. |
| Key Differentiators | 1. Visa Principal Membership (operational control, speed). 2. Stablecoin-native settlement (vs. fiat retrofits). 3. Enterprise-grade compliance (PCI/SOC2). All are real but replicable by well-capitalized competitors. |
| Competitive Landscape | Not alone. Key competitors: • Bridge (with Visa/Stripe): Biggest strategic threat due to distribution. • MoonPay + Mastercard: Credible wallet-based card threat. • Circle/Paxos: Can bundle treasury/issuance economics. • BVNK/Fireblocks: Compete on adjacent rails (B2B payouts, institutional flows). Rain has an early lead but no unassailable moat. |
| Core Risks | 1. Regulatory: Scrutiny on yield-bearing stablecoins (e.g., USD+) could impact programs. 2. Network Power: Visa/Mastercard could enable stablecoin settlement for everyone, eroding Rain's edge. 3. Distribution: Lacks the top-of-funnel of Stripe/Bridge or MoonPay. 4. Economics: Does not capture issuer reserve yield; margins face pressure from rivals who can subsidize. 5. Operational: Scaling fraud/compliance across 150+ countries is expensive and high-risk. |
| Investment Green Flags | • ≥$1B GPV run-rate in 12-18 months. • Program gross margins > 150 bps. • Fraud loss < 8 bps of spend. • 3+ live programs with Fortune-500 vendors or >5M MAU wallets. • Visa documentation on stablecoin settlement mechanics. |
| Investment Red Flags | • Reliance on "reach" metrics without live spend. • Aggressive marketing of yield-bearing tokens in regulated markets (e.g., U.S.). • Lack of transparency on key unit economics and risk metrics. |
| Strategic Recommendations | 1. Own "issuer-grade" niche: Market stablecoin-native settlement for enterprise treasury efficiency. 2. Bundle partners: Offer one MSA for custody, compliance, and liquidity. 3. Win in emerging markets (LatAm, Africa) first, where utility is highest. 4. Publish attestations/dashboards to prove industrial-grade reliability. 5. Consider M&A with a payouts player to widen the moat. |
| Final Verdict | Credible early traction but not yet an unassailable moat. Execution and partner distribution will decide if Rain becomes a category consolidator or gets boxed out by giants. The market is valid, but the competitive field is crowded and powerful. |
NOT INVESTMENT ADVICE