Stablecoin Venture Fund Targets Asia’s Growing Digital Payments Market

Kaia is expanding deeper into stablecoin infrastructure with the launch of a new venture fund aimed at backing payment rails, onchain finance platforms, and digital asset infrastructure across Asia.

The new fund, called the Kaia-Simsan Financial Innovation Venture Fund, was launched through a partnership between Kaia Investment Partners (KIP) and UK-based Simsan Ventures. The initiative follows KIP’s earlier push into tokenized real-world assets through its Yield8 private credit fund.

The move comes as stablecoins gain traction beyond crypto trading, with financial firms increasingly exploring blockchain-based settlement systems for payments and remittances.

Stablecoins move toward mainstream finance

Kaia said the fund will focus on sectors tied to stablecoin adoption, including payment infrastructure, cross-border settlements, remittances, wallets, compliance tools, tokenized assets, and yield-bearing protocols.

The company pointed to growing institutional activity around stablecoins, citing moves by firms such as Visa, Stripe, PayPal, and BlackRock as evidence that digital dollar infrastructure is becoming part of mainstream finance.

Kaia also referenced forecasts from Citigroup projecting stablecoin issuance could grow to between $1.9 trillion and $4 trillion by 2030.

Asia becomes key focus for stablecoin expansion

The fund plans to allocate roughly 70% of investments across Asia, targeting regions where remittance activity and cross-border payment demand remain high.

Kaia said Southeast Asia has emerged as one of the fastest-growing markets for stablecoin adoption due to high transaction costs and fragmented banking systems. The company also highlighted South Korea’s expected stablecoin legislation in 2026 as a potential catalyst for regional growth.

The blockchain platform, formed through the merger of Kakao-backed Klaytn and LINE’s Finschia, said portfolio companies could gain access to distribution channels tied to its network of more than 250 million users across Asia. Recently, Kaia released its Technical Roadmap, outlining its long-term strategy to position the network as core infrastructure for institutional on-chain finance, with a strong focus on stablecoin settlement, scalability, and real-world asset integration.

 

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