Fueling the Next Wave of Stablecoin Startups
Dubai-based venture studio Code & State has successfully raised $3 million in funding from Warburg Serres and KR1 to support emerging stablecoin projects. With stablecoins becoming an essential part of the global financial ecosystem, this investment will help drive real-world adoption by providing funding, infrastructure, and mentorship to innovative startups.
Why Stablecoins?
The stablecoin market is growing at an unprecedented rate, with transaction volumes exceeding $15 trillion in 2024. The demand for secure, efficient, and scalable financial solutions continues to rise, especially in cross-border payments, remittances, and decentralized finance (DeFi).
According to Cédric Waldburger, a founding investor in Liquity (LUSD stablecoin):
“We believe the total market cap of stablecoins will 10x in the next five years, reaching over $1.5 trillion.”
This rapid expansion highlights the need for better infrastructure, compliance, and security solutions, which Code & State is determined to provide.
How Will the Funding Be Used?
Code & State plans to use the $3 million to incubate and accelerate stablecoin-focused startups. In effect, helping entrepreneurs develop solutions that bridge the gap between digital assets and real-world applications.
Key focus areas include:
- Payment systems & remittances – Making stablecoins a mainstream financial tool
- Regulatory compliance – Ensuring startups meet legal requirements
- Security & risk management – Strengthening protection for stablecoin transactions
By offering funding, mentorship, and a strong industry network, Code & State ensures that promising projects scale effectively and integrate seamlessly into the global economy.
Building a Network for Success
Beyond financial support, Code & State actively recruits entrepreneurs-in-residence to develop innovative stablecoin-based ventures. Selected startups gain:
- ✅ Hands-on support from industry experts
- ✅ Access to investors and strategic partners
- ✅ A clear path from concept to market launch
Co-founder Artia Moghbel emphasized the importance of collaboration:
“Our clear focus on stablecoin ventures creates network effects for all our in-house startups.”
This approach not only fosters innovation and growth but also positions Code & State as a key catalyst for stablecoin adoption worldwide.
The Future of Stablecoins
As stablecoins continue to redefine digital payments, Code & State’s mission is to equip startups. It will help with the tools and resources they need to succeed. With strong backing from investors and a focus on real-world use cases, the venture studio is paving the way for a more stable and accessible financial future.