Kado, a stablecoin payment infrastructure provider, finished its first capital round for $5.4 million on Tuesday, according to the company’s co-founders.
Emery Andrew, co-founder and CEO of Kado, said that there has to be more stablecoin access, ease, and ability to use them
Race Capital, Circle Ventures, Collab+Currency, Republic Capital, PrimeBlock Ventures, 0xVentures, T&G Ventures, Skyvision Capital, Lunatic Capital, Contango Digital, TPS Capital, and a few angel investors, including Blockworks Co-founder Jason Yanowitz, lead the seed round.
According to Andrew, the financing will help Kado expand outside the Terra environment into other stablecoins, multichain worlds, and marketplaces. At the moment, there is no public assessment.
The company was founded in May 2021 following a Terra community hackathon. Its mission is to help stablecoin ecosystems such as Terra’s UST by developing tools that make it easier for consumers to spend and use their stablecoins. Andrew stated that it intends to give support for Circle’s USDC in the near future.
“Ultimately, in our first six months, we created Kado Pay, which allows you to spend your stablecoins on Amazon, not natively, but through our app,” Andrew explained. “You can come to our site and instantly spend stablecoin, and very soon you’ll be able to spend USDC as well.”
The demand for stablecoins has surged over the last year, with Terra’s market value increasing 1,563 percent from $830.88 million on the same date last year to $13.82 billion on Monday. Meanwhile, the market cap of USDC, another popular stablecoin, has increased 487 percent in the last year, rising from $8.93 billion to $52.47 billion.
“Getting access to UST is the biggest challenge in the Terra ecosystem; you have to pass through all these hoops…so there’s much friction involved,” said Vince Dowdle, co-founder and chief operating officer. So, last month, the business released Kado Ramp, an application that allows users to exchange dollars for stablecoins in minutes.
“People who don’t grasp the nuances of cryptocurrency may simply connect their bank account and onboard directly into these protocols natively with dollars,” Dowdle explained.
According to Andrew, the company processed over $1 million in UST purchases in its first week and has been expanding at a rate of roughly $100,000 per day thereafter. It already has users from over 60 countries and Dowdle thinks that purchases will expand further as a result of additional payment options and protocol agreements.
Andrew stated that the company intends to extend into additional ecosystems beyond Terra, with a focus on cross-chain services such as Solana to USDC and Avalanche to USDC.
“Ultimately, we want to make sure the merchant experience is as straightforward as possible,” Andrew said.