Rain Labs Raises Undisclosed Amount From Galaxy Ventures, Goldcrest, Thayer, and Hard Yaka to Launch Visa Cards That Let Customers Spend Stablecoins

Also participating in the investment were Galaxy Ventures, Goldcrest, Thayer, and Hard Yaka. Rain's valuation in the round was not disclosed.

Rain, a startup that provides stablecoin and cryptocurrency payment services to businesses and consumers, has raised $35 million in Series A funding led by Point72 Ventures.

Also participating in the investment were Galaxy Ventures, Goldcrest, Thayer, and Hard Yaka. Rain’s valuation in the round was not disclosed.

The company, which is principal member of Visa, one of the world’s largest payment companies, allows businesses and consumers to make purchases using stablecoins and other crypto. Rain also provides payroll services in local currencies and food stamps.

The startup, which was founded in 2019, is heavily focused on expanding customer access to stablecoins.

“We want to provide U.S. dollar services to people globally,” Farooq Malik, co-founder and CEO of Rain, told Fortune.

International businesses rely heavily on making payments in U.S. dollars and Malik noted that there’s a huge demand for such services.

“We’re able to service that and we’re able to provide it in partnership with Visa to accept payments at any store, online or offline, that accepts Visa.”

Rain partners with businesses in the U.S and Latin America to issue cards and plans to continue expanding globally.

“A lot of companies now have a global workforce and lots of people have been getting paid in dollars across borders for the last decade or so. Stablecoins allow us, and our infrastructure allows us, to actually provide digital dollar services to people globally.”

The company recently announced a partnership with the Avalanche Foundation, the non-profit behind the Avalanche blockchain and its native AVAX token, to launch a Visa card that lets customers make payments using their AVAX tokens and stablecoins like USDC and USDT at any store that accepts Visa.

“You have assets…they can be in USDC or Avalanche tokens and you get seamless access to spending capacity,” Malik said.

Rain receives a percentage of the fee that Visa charges merchants to take payments on the Visa card network. Rain also charges a subscription fee that corporate customers pay to introduce card programs and get access to the company’s platform.

Rain processes transactions in over 100 countries, the company says. However, Malik declined to disclose specific usage metrics and the company’s annual revenue.

The idea of crypto cards is not new. Crypto exchange Coinbase offers customers a Visa debit card that lets holders spend crypto—including stablecoins—and fiat-currencies directly from their Coinbase balance. Another crypto exchange, Gemini, offers its customers a credit card that doesn’t let holders make payments in crypto but rather provides crypto as a reward for spending a certain amount in dollars.

Rain will use the money raised in this round to expand its team, develop new technologies, and apply for additional regulatory licenses.

The company previously raised $6 million from Lightspeed Venture Partners in 2022 to launch corporate credit cards for decentralized autonomous organizations like Uniswap.