Diameter Pay Raises $10 Million to Expand Stablecoin Payments Infrastructure

Diameter Pay has reportedly raised $10 million in a Series A funding round as the stablecoin payments infrastructure provider looks to expand its banking, payments and digital asset capabilities.

The round was co-led by CMT Digital and Lightspeed Faction, according to a Thursday (Sept. 3) report in The Block. Other investors included SixThirty Ventures, Stellar Development Foundation, Tech Council Ventures, Onigiri Capital and BitRock Capital.

The financing marks Diameter Pay’s first outside funding round. Founder and CEO David Lighton told The Block that the company was bootstrapped before the Series A. The equity round began in April and closed in July in a single tranche. Lighton declined to disclose the company’s post-money valuation.

Founded in 2023, Diameter Pay provides payment infrastructure to banks, FinTech companies and digital asset exchanges. Its platform provides access to U.S. dollar virtual accounts, domestic and international payment rails, stablecoin on- and off-ramps and compliance controls through U.S. banking partners, according to The Block.

Lighton said the company’s virtual accounts allow foreign FinTech companies to offer U.S. dollar accounts to their customers while Diameter Pay manages compliance and payment controls. The accounts can also connect to stablecoin infrastructure.

Diameter Pay began processing payments for foreign banks in 2024. The company said it has processed more than $10 billion in payment volume this year.

Its sponsor banking partners include Portage Bank and SSB Bank, along with a third publicly traded sponsor bank that has not been disclosed, Lighton told The Block. He said additional banks are being onboarded.

“When a sponsor bank partners with us, they are allowing us to use their access to the USD clearing infrastructure, and in exchange, they get fee revenue and low-cost deposits,” Lighton said.

The company said access to dollars has become more difficult in some markets as correspondent banks have withdrawn from certain regions amid increased sanctions and anti-money-laundering risks. Diameter Pay said this can leave legitimate businesses excluded from financial services.

Diameter Pay plans to use the new capital to expand its banking and payment capabilities, deepen its stablecoin and foreign exchange infrastructure and continue investing in technology and compliance tools for cross-border dollar movement.

As part of the financing, CMT Digital received a board seat, while Lightspeed Faction and SixThirty Ventures received observer seats, Lighton told The Block. Robert Pozen, former president of Fidelity Investments, is serving as a senior adviser to the board.