Stablecoin neobank Fasset has raised a fresh round of funding, amounting to $51 million, amid a push towards stablecoin development.
The Los Angeles-based digital banking platform announced on Wednesday that the Series B round of investment has finally culminated, adding that firms like SBI Group, Investcorp, and Turkish asset manager Arz Portföy participated as investors.
The firm serves over 1,000 business customers across 125 countries, operating primarily in South Asia, Southeast Asia, Africa, and the Middle East.
“We are building Fasset for a world where money moves as easily across borders as information does,” said Mohammad Raafi Hossain, CEO and co-founder of Fasset.
“This funding round strengthens our ability to build regulated banking services and expand into new markets where our services are needed most.”
Stablecoin momentum builds as institutions explore new payment rails
The capital injection occurs amid rapidly growing interest among institutions in using stablecoins as payment instruments. The trend has become noticeable as traditional financial companies start exploring ways in which these new technologies can be integrated into the international payment network.
According to the analyses of the company Coinbase, fiat stablecoins are increasingly used in DvP systems due to improving regulations in 2026 in important jurisdictions.
Thus, stablecoins become gradually integrated not only in trading but also in financial settlements, moving from the status of trading instruments towards becoming a critical part of such systems.
Nevertheless, it should be noted that the development of stablecoins is taking place at unprecedented speeds. The market value of fiat stablecoins reached more than $273 billion as of March 2026, while it was merely $6.8 billion as of the beginning of 2020.
However, it should be noted that stablecoins pose certain challenges to the long-term business model of firms using them as a basis for their operations. Thus, some analysts draw attention to potential risks of neobanks that operate on stablecoin rails due to extremely low transaction costs (approaching zero).
It becomes challenging for companies that depend largely on fee-based models to continue generating good profits as they grow. As a result, there is a gradual movement by most companies towards high-margin solutions such as lending, credit, and trade finance after creating a robust payments ecosystem.
Fasset, which is moving from simple payments solutions to financial services, is one company following this pattern.
The financial model at Fasset is also influenced by its Shariah-compliant financial model that meets the regulatory and cultural needs in areas such as the Gulf countries, Pakistan, and Indonesia.
This puts it in a position to tap into a market where there is an increasing demand for Shariah-compliant digital financial solutions alongside stablecoin adoption.
Fasset’s capital raise comes as crypto sector sees fall in funding
The level of funding in the crypto world has begun to slow down already in 2026. Indeed, private financing rounds have shrunk significantly compared to the previous waves of interest in the market.
It becomes increasingly important for investors to make sure that crypto projects have real possibilities to create a sustainable economic model and generate revenue.
In their turn, many cryptocurrency businesses react by adopting a new approach to their operations. They stop prioritizing speedy growth and start to concentrate on efficiency, economy, and other aspects, which are much more likely to ensure the sustainability of a company.
Consequently, the amount of large investments made by venture capital companies decreases sharply.
The situation described above indicates the necessity to adopt some significant changes in the whole industry. The time when the access to funds was not an issue anymore is over, as nowadays investors make much more rigid demands regarding the fundamentals of a startup.
Therefore, the amount of money raised in each financing round shrinks dramatically, and entrepreneurs need to stretch the existing resources for their business.