PhotonPay Series B Shows Race for Stablecoin Payment Rails
- PhotonPay raised a Series B round led by IDG to expand stablecoin-native payment rails.
- Funding targets U.S. and emerging markets as stablecoins shift toward real-world payments.
- PhotonPay processes over $30B annually as investors back stablecoin payment infrastructure.
PhotonPay has raised a Series B funding round as investors increase bets on stablecoin payment infrastructure becoming a core global financial layer. The stablecoin-based payments firm said the round raised tens of millions of dollars and was led by IDG Capital.
Hillhouse Investment joined the round, alongside Enlight Capital, Lightspeed Faction, and Shoplazza, according to the company. PhotonPay said Blacksheep Technology served as the exclusive financial adviser for the transaction.
The company did not disclose its valuation following the Series B raise. Founded in 2015, PhotonPay positions itself as a provider of stablecoin-native payment rails for global commerce. The firm said the new capital will support expansion across the United States and selected emerging markets. PhotonPay also plans to hire key personnel and deepen its global regulatory footprint.
Stablecoin Rails Move Toward Mainstream Payments
PhotonPay said it now operates from 11 global hubs and employs more than 300 people. The company serves businesses across e-commerce, marketplaces, B2B trade, online travel, and logistics. It also targets high-growth digital sectors, including artificial intelligence, software-as-a-service, and digital entertainment.
PhotonPay reported that its platform processes more than $30 billion in annualized payment volume. The company said it runs on a stablecoin-native clearing infrastructure designed for real-time settlement.
PhotonPay stated that its services help tens of thousands of businesses reduce international transfer costs by over 75%. It also said customers have improved operating efficiency by roughly 60% using its payment rails.
Founder and chief executive Lewison Chen said global payments are shifting away from fragmented interbank systems. He said businesses increasingly seek real-time liquidity and continuous treasury operations.
Chen said PhotonPay aims to make stablecoins a default layer within the future payments stack. The company described this transition as a structural shift rather than a short-term trend.
Partnerships and Regulatory Focus Shape Expansion Plans
To strengthen global connectivity, PhotonPay highlighted partnerships with major financial institutions. These partners include J.P. Morgan, Circle, Standard Chartered, DBS, and Mastercard, according to the company. PhotonPay said these relationships support account issuance, acquiring services, and foreign exchange capabilities.
The company plans to expand these offerings as transaction volumes increase. PhotonPay also intends to roll out enterprise value-added services in 2026. These services will include treasury products designed to generate yield on idle balances.
The firm also plans to introduce flexible credit facilities for enterprise customers. PhotonPay said these offerings target institutional clients rather than retail crypto traders.
The Series B round comes as stablecoin usage expands beyond trading into everyday business payments. Merchants and platforms increasingly seek faster settlement and lower cross-border payout costs.
PhotonPay said businesses that operate in several jurisdictions have the highest demand. However, the company acknowledged that scaling stablecoin payments requires strict compliance standards. Regulatory licensing remains critical as authorities increase oversight of digital payments.
Related: Factors Driving Stablecoin Market Expansion: Report
Partnerships with card networks and banks continue to be essential to expansion strategies. Risk controls and transaction monitoring continue to draw scrutiny as stablecoins enter mainstream commerce.
PhotonPay aims to build a secure and compliant financial operating system for global businesses. The company framed its strategy around infrastructure rather than consumer-facing financial products.
The funding round highlights how capital is shifting toward payment plumbing within the crypto sector. Investors appear focused on firms building regulated settlement layers for cross-border commerce.
PhotonPay plans to use the new capital to accelerate this long-term infrastructure buildout. The company said stablecoins are becoming foundational tools for moving value across global markets. This signals rising competition among firms racing to define the future of global payments.
