AllScale, a New York-based fintech startup specializing in stablecoin-based payments, secured $5 million in seed funding round. This marks its second seed round, following a $1.5 million raise in June 2025, bringing total funding to $6.5 million. The round was co-led by YZi Labs (via its EASY Residency Season 2 program), Informed Ventures, and Generative Ventures, with additional participation from undisclosed backers.
AllScale was co-founded in late 2024 by Shawn and Leo, leveraging his experience at Kraken where he spearheaded stablecoin product integrations. The idea crystallized amid the 2024 crypto resurgence, when transaction fees for international remittances averaged 6.5% via traditional rails, far exceeding stablecoin costs of under 0.1%. Pang, alongside a core team of five, bootstrapped initial development before seeking external capital.
Headquartered in New York City, AllScale benefits from proximity to regulatory bodies like the NYDFS, which has greenlit stablecoin pilots since 2023. The company’s ethos, merging crypto’s speed with fiat’s reliability, resonates in an era where 1.7 billion unbanked individuals seek accessible finance. Early traction came from Web3 DAOs and freelance networks, validating demand for tools that bypass SWIFT delays.
The $5 million infusion, co-led by YZi Labs, Informed Ventures, and Generative Ventures, underscores AllScale’s appeal to forward thinking VCs. YZi Labs’ EASY Residency not only provided $2 million of the total but also embedded AllScale in a cohort of 10 startups, offering weekly pitch refinements and investor intros. Informed Ventures contributed $1.5 million, drawn by AllScale’s data analytics layer for transaction risk scoring. Generative Ventures rounded out the leads with $1 million, emphasizing synergies with AI driven commerce.
Secondary investors, though unnamed, likely include high net worth individuals from crypto circles, given AllScale’s 20% Web3 user base. The round closed swiftly, within 45 days of term sheet, reflecting strong founder-VC alignment. Valuation remains private, but comparables like Hong Kong-based stablecoin startup Relay (valued at $20 million post $3 million seed) suggest AllScale’s pre money figure hovers at $18-22 million.
Funds allocation prioritizes:
- 40% Product R&D: Enhancing AI agent APIs for automated invoicing and predictive compliance.
- 30% Team Growth: Doubling engineering headcount to 15 and adding sales roles for APAC outreach.
- 20% Marketing/Partnerships: Co-marketing with social platforms and custodian firms.
- 10% Reserves: For regulatory filings and buffer against crypto volatility.
This structure mirrors best practices for seed stage fintechs, balancing innovation with prudence.
AllScale’s backers form a complementary network:
- YZi Labs: Beyond capital, their residency program has accelerated 70% of alumni to Series A within 12 months. For AllScale, this means access to y2z’s alumni network, including pilots with e-commerce DAOs.
- Informed Ventures: Their portfolio analytics tools will integrate with AllScale’s dashboard, enabling real time fraud detection, critical as stablecoin scams rose 25% in 2025.
- Generative Ventures: As AI specialists, they facilitate intros to agentic economy players, positioning AllScale for machine pay machine use cases like autonomous supply chains.
This syndicate’s $300 million+ AUM dwarfs AllScale’s needs but amplifies its network effects. Notably, crypto heavy investors like Amber Group (from the prior round) provide liquidity expertise, while Informed’s traditional bent ensures balanced governance.
AllScale’s capital journey illustrates adaptive fundraising in a choppy 2025 VC landscape, where fintech deals dipped 15% amid rate hikes but crypto subsets boomed 30%.
| Round | Date | Amount | Lead Investors | Post Round Valuation (Est.) | Key Outcomes |
| Pre Seed | Q1 2025 | <$0.5M | Founders/Angels | N/A | Prototype build |
| Seed 1 | Jun 30, 2025 | $1.5M | Draper Dragon, KuCoin Ventures, Amber Group, y2z | $10-12M | Beta launch, 2K users |
| Seed 2 | Dec 8, 2025 | $5M | YZi Labs, Informed Ventures, Generative Ventures | $20-25M | APAC entry, $50M volume target |
The June round’s $1.5 million fueled core features like self custody wallets, achieving 95% uptime and sub second settlements. Metrics post first seed, $10 million processed, 15% MoM user growth, de-risked the follow-on, justifying a 3x upsize.
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Core Products and Technological Edge
At its heart, AllScale is a layered protocol:
- Invoice Module: Drag and drop templates with e-sign via DocuSign API, supporting 50+ fiat ramps and instant USDC conversion. Usage spiked 200% in Q4 2025 among U.S. freelancers.
- Social Commerce Suite: Embeddable payment links convert social traffic to revenue, with 70% completion rates vs. 40% for traditional carts. Integrates with Twitter/X and TikTok.
- Payroll Engine: Handles multi currency batches with embedded KYB, reducing payout times from 3-5 days to minutes. Supports 200+ jurisdictions, compliant with FATF standards.
Technologically, AllScale leverages Ethereum Layer 2s like Base for low fees (<$0.01/tx) and Chainlink oracles for price stability. Its compliance stack, automated AML via on-chain KYT, mitigates risks, earning nods from regulators. Future roadmaps include NFT-based escrow for gig economy disputes.
Competitive Landscape and Differentiation
In a crowded $150 billion remittances market, AllScale competes with:
- Deel/Papaya Global: Payroll giants ($600M+ raised) but fiat heavy, lacking native stablecoin rails.
- Circle/USDC Ecosystem: Infrastructure providers, yet without AllScale’s end to end UX for non crypto users.
- Relay/PayPal Crypto: Regional players, but AllScale’s self custody appeals to privacy focused Web3 users.
AllScale’s edge: 90% cost savings on cross border fees and 24/7 availability. With 5% market penetration among micro-SMEs targeted, it eyes $100 million ARR by 2027.
Broader Market Dynamics and Regulatory Tailwinds
The 2025 stablecoin surge, $300 billion in circulation, fuels AllScale’s momentum, per Chainalysis data. The U.S. GENIUS Act’s passage in October 2025 clarified AML rules, boosting institutional trust. Globally, APAC’s 40% adoption rate (led by Singapore) offers expansion upside, though EU’s MiCA adds compliance hurdles.
Challenges include oracle failures (mitigated via multi source feeds) and adoption inertia among legacy users. Yet, with 60% of Gen Z favoring crypto payments (per PwC), tailwinds prevail.
Strategic Implications and Growth Projections
This round catapults AllScale toward profitability by Q4 2026, with break even at $20 million revenue. It enables 5x user growth to 10,000 and strategic hires, including a CRO from Stripe. Series A scouts, potentially from a16z Crypto, will scrutinize metrics like LTV:CAC (currently 4:1).
AllScale exemplifies fintech’s crypto pivot, transforming friction into fluidity for global hustlers. As stablecoins underpin AI commerce, this funding isn’t just capital, it’s ignition for a borderless economy.
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