Diameter Pay Raises $10 Million in Series A to Expand Stablecoin Payments Infrastructure

Diameter Pay, a startup building stablecoin-based payments infrastructure, has secured its first external funding since its founding.

The company raised $10 million in a Series A round co-led by CMT Digital and Lightspeed Faction, crypto media outlet The Block reported on September 3. SixThirty Ventures, the Stellar Development Foundation, Tech Council Ventures, Onigiri Capital and Bitrock Capital also participated.

Founder and Chief Executive Officer David Lighton said Diameter Pay had operated on its own capital without outside funding before the Series A round. The equity financing began in April and closed in July.

Founded in 2023, Diameter Pay provides US dollar payments infrastructure to banks, fintech companies and digital-asset exchanges. Its platform enables overseas fintech firms to offer customers virtual US dollar accounts, while payments and compliance are handled through partner banks in the US. Fortage Bank and SSB Bank are among its sponsor banks.

Sponsor banks can use Diameter Pay to provide dollar clearing infrastructure while generating fee income and gathering low-cost deposits, Lighton said. He added that he developed the business model based on his experience at the World Bank, where he studied the economic impact of remittances and cross-border payments in Haiti.

Diameter Pay has processed more than $10 billion in payments so far this year. It counts banks and large fintech companies in major financial hubs such as Switzerland and Singapore among its clients, and its end-user base has topped 10,000.

The company plans to use the proceeds to expand its banking and payments infrastructure and enhance technology related to stablecoins and foreign exchange. It also plans to strengthen technology and compliance systems for cross-border dollar payments.

As part of the funding round, CMT Digital will take a board seat, while Lightspeed Faction and SixThirty Ventures will serve as board observers. Former Fidelity Investments President Robert Pozen has joined as senior adviser to the board.