Stablecoin payment unicorn Rain raises $250 million, valuation soars to $1.95 billion

Stablecoin Payment Company Rain Announces Latest Funding Round of $250 Million, Valuing the Company at $1.95 Billion, Entering Unicorn Status. This round was led by ICONIQ, with participation from top institutions such as Sapphire Ventures. Rain Co-Founder and CEO Farooq Malik stated that the total funding has exceeded $338 million.

Rain’s $250 Million Funding Refreshes Stablecoin Payment Track

Stablecoin payment company Rain announced that in its latest funding round, it raised $250 million, with a valuation of $1.95 billion, officially entering the unicorn club. The round was led by ICONIQ, one of Silicon Valley’s most secretive venture capital firms, whose limited partners include tech legends like Mark Zuckerberg and Jack Dorsey. Participating firms include Sapphire Ventures, Dragonfly, Bessemer, Lightspeed, Galaxy Ventures, and other top institutions.

Rain Co-Founder and CEO Farooq Malik said that this round brings the company’s total funding to over $338 million. Based on the total amount raised, Rain is now one of the most well-funded players in the stablecoin payment sector. This substantial capital reserve provides Rain with a long-term competitive advantage, enabling large-scale investments in regulatory compliance, technological R&D, and market expansion.

The jump in valuation from the previous round to this round is equally impressive. Although Rain has not disclosed its previous valuation, based on the funding amount, the $1.95 billion valuation in this round may be several times higher than the previous one. This valuation growth reflects investor confidence in the stablecoin payment track and Rain’s established competitive edge in the field.

A $1.95 billion valuation places Rain just behind a few leading players in the stablecoin payment domain. Circle (issuer of USDC) is valued at over $5 billion, but its primary business is stablecoin issuance rather than payments. Among companies focused on payment infrastructure, Rain’s valuation is already among the top, indicating market recognition of its business model and growth potential.

Rain Funding and Valuation Milestones

Latest Round: $250 million raised, valuation $1.95 billion

Lead Investor: ICONIQ (LPs include Zuckerberg, Dorsey)

Participants: Sapphire, Dragonfly, Bessemer, Lightspeed, Galaxy

Total Funding: Over $338 million

Sector Position: Top unicorn in stablecoin payment field

From the investor lineup, Rain’s backing is extremely prestigious. Dragonfly is a top crypto fund focused on Asia, Bessemer is a century-old traditional venture giant, Lightspeed has invested in Snapchat and Affirm, and Galaxy Ventures is Mike Novogratz’s crypto-focused fund. This cross-over of traditional VC and crypto-native capital demonstrates recognition from both worlds.

Crypto Funding Surges 497% in January 2026

Rain’s funding activity exemplifies the hot crypto VC market in January 2026. According to RootData, there were 52 publicly announced crypto VC projects in January 2026, a 15% decrease from December 2025 (61 projects), and a 42% decrease from the same period last year (89 projects in January 2025). The decline in project count indicates a more cautious market, with investors preferring to select quality projects rather than spreading thin.

However, funding amounts tell a different story. In January 2026, total funding reached $14.57 billion, up 61% from the previous quarter (December 2025: $9.06 billion), and up 497% from the same month last year ($2.44 billion). The phenomenon of fewer projects but significantly increased funding shows capital is concentrating on top-tier projects.

The jump from $2.44 billion to $14.57 billion, a 497% annual growth rate, is astonishing in any venture market. It indicates that despite low crypto market prices, institutional investors remain highly enthusiastic about quality projects. This counterintuitive approach is typical of “smart money”: investing at lower valuations during market panic to acquire better assets.

Distribution of projects across sectors shows where investment focus lies. CeFi accounts for about 15%, DeFi about 25%, NFT/GameFi about 6%, L1/L2 about 6%, RWA/DePIN about 10%, Tool/Wallet about 8%, and AI about 8%. DeFi leads with 25%, reflecting ongoing optimism for decentralized financial infrastructure. Stablecoin payments, as a key part of DeFi, are benefiting from this investment wave.

CeFi’s 15% share also indicates that, despite the mainstream narrative favoring decentralization, traditional centralized financial services continue to attract significant investment. This balance reflects a pragmatic market attitude: the ideal is decentralization, but compliant centralized services still have huge market demand.

BitGo IPO and Ripple Strategic Partnership Lead Trends

Other major deals in January further confirm the hotness of the stablecoin payment track. Crypto custodian BitGo priced its US IPO at $18 per share, above the previous range of $15 to $17. The company and existing shareholders sold 11.8 million shares, raising approximately $213 million, with a current market cap exceeding $2 billion. The IPO was underwritten by Goldman Sachs and Citigroup, making BitGo the first crypto company to go public in 2026.

BitGo’s successful listing is a milestone for the entire crypto industry. It proves that compliant crypto companies can raise capital through traditional markets under current regulatory conditions, providing a pathway for other firms. The IPO price above the upper limit indicates strong demand from traditional investors for crypto infrastructure companies.

Ripple announced a multi-year strategic partnership with LMAX Group, with Ripple providing $150 million in financing to support RLUSD stablecoin’s use as collateral and settlement asset within LMAX’s global institutional trading system. The partnership also includes RLUSD custody via LMAX Custody and integration with Ripple Prime.

This deal demonstrates the penetration of stablecoins into traditional finance. LMAX, a leading global institutional FX trading platform, adopting RLUSD as a settlement asset signifies that stablecoins are entering institutional-grade financial infrastructure. Such applications are far more strategic than retail payments, given the larger scale and frequency of institutional trading.

Blockchain infrastructure firm Fireblocks acquired crypto accounting platform TRES Finance for approximately $130 million in cash and stock. This is Fireblocks’ second acquisition in three months, showing a rapid expansion strategy through M&A. Fireblocks stated that this acquisition will enhance its data analytics and financial management capabilities in crypto, helping enterprises better manage assets across multiple platforms and wallets.

Accelerating Market Consolidation and Notable Leading Effects

January’s funding data reveals a trend of market consolidation. Coincheck announced it would acquire approximately 97% of Canadian digital asset manager 3iQ for about $112 million. The valuation of 3iQ is estimated at around $112 million. The deal is expected to close in Q2 2026, with Coincheck planning to acquire 100% control through subsequent purchases.

Founded in 2012, 3iQ launched North America’s first Bitcoin and Ethereum funds listed on the Toronto Stock Exchange and introduced Solana staking ETF and XRP spot ETF in 2025. Its rich product line and regulatory experience are assets Coincheck values, providing a shortcut into the North American market.

Other notable financings include: Superstate closed an $82.5 million Series B, managing over $1.23 billion; Mesh completed a $75 million Series C at a $1 billion valuation; Talos raised $45 million in Series B, with Robinhood participating, valuing at $1.5 billion. These deals show that, regardless of market conditions, high-quality crypto infrastructure projects continue to attract ample funding.

The hot stablecoin payment track is closely tied to macro trends. As global demand for USD stablecoins continues to grow, stablecoin settlement balances are projected to reach $1 trillion to $2 trillion by 2027. Rain, as a leading player in this track, is well-positioned to benefit from the industry’s growth.