AllScale Raises $5M Seed Round Led by Yzi Labs: Key Details and What it Means

AllScale, a fintech startup operating as a self-custody stablecoin neobank, has obtained $5 million in seed funding. The round was led by Yzi Labs via its EASY Residency Season 2 program, with Informed Ventures and Generative Ventures as co-leads.

According to AllScale’s December 8, 2025 announcement on X, the seed round includes contributions from Aptos, DeepMind, INP Capital, Astera Ventures, Summer Sun Capital, Carry Investment, V3V Ventures, and other participants. This investment follows a $1.5 million pre-seed round and aims to support stablecoin-based borderless payments for microbusinesses, freelancers, and AI agents.

AllScale operates in the stablecoin market, where assets such as USDT and USDC enable international transfers. The company prioritizes anti-money-laundering compliance and offers services that do not require traditional bank accounts.

This round extends AllScale's collaborations, such as its partnership with BNB Chain. Previous investors, including Amber Group and Draper Dragon, backed the initial product development. The funding supports growing interest in stablecoin use for everyday payments, particularly in regions where more than 1.4 billion adults lack access to banking.

What Services Does AllScale Provide?

AllScale is a non-custodial platform that integrates stablecoin features with neobank operations. It enables payments with stablecoins such as USDT and USDC, eliminating the need for bank accounts or managing elements like seed phrases. Users can set up a self-custody wallet using a passkey system that removes seed phrases and reduces friction, according to AllScale’s product documentation. The system connects to blockchains, including BNB Chain and Layer-2 networks, to support efficient, low-cost transactions.

These wallets use paymaster sponsorship to handle gas fees, resulting in no-cost operations. The platform offers invoicing and contract tools that allow users to create, sign electronically, and distribute documents, with built-in stablecoin payment links for quick settlements.

AllScale supports social commerce for sales through apps such as WhatsApp and Telegram. Payroll functions support automated international transfers, and AllScale reports that early pilot users completed payroll runs that previously took several days via banks within minutes using its automated stablecoin system. It also includes AI components, such as machine-to-machine payments and large-language-model-based financial assistants.

By December 9, 2025, AllScale had recorded more than 50,000 wallet creations. The platform targets markets such as Africa through partnerships with freelancers, with expansion into Latin America planned for early 2026.

Which Investors Participated?

Yzi Labs, formerly Binance Labs since 2025, oversees more than $10 billion in assets as the family office of Changpeng Zhao and Yi He. It invests in Web3, AI, and biotech with an impact focus. As a leading provider of EASY Residency, it has supported Aster, Tabi, Plume Network, and Gata. In October 2025, it started a $1 billion BNB ecosystem fund. An official cited product-market fit indicators as the basis for the investment.

Informed Ventures, based in Menlo Park and formed in March 2025, manages early investments in digital health, fintech, AI, and SaaS from GSR Ventures. It seeks technologies for overlooked markets. Partner David Yin highlighted how stablecoins enable international services for small businesses.

Generative Ventures targets AI-driven economies on blockchains. Its partners include Lex Sokolin and Will Wang, both affiliated with BAI Capital, which has $4 billion in assets under management. Wang noted AllScale's role in advancing crypto-native banking standards with emphasis on open-source and decentralized finance.

Aptos, a Layer-1 blockchain, contributes through its labs for scalable Web3. DeepMind invests in early blockchain, separate from Google's AI unit. INP Capital, based in Vancouver with international teams, covers fintech, medtech, biotech, and digitalization across stages.

Astera Ventures, launched in 2024 and listing offices in both Toronto and San Francisco according to its public materials, supports blockchain and AI entrepreneurs.

Summer Sun Capital focuses on blockchain sectors, including DeFi and stablecoins. Carry Investment operates as a private entity; public information indicates involvement in several crypto-aligned projects, though its funding structure is not fully disclosed. V3V Ventures supports visionary startups through a Web3 and NFT portfolio, including business development assistance from JBond.

What Does the Funding Mean for AllScale?

The $5 million seed round positions AllScale to move from early product validation into broader operational deployment. According to the company’s public statements, the capital is intended to scale three core areas: infrastructure reliability, market expansion, and compliance readiness. For a self-custody neobank operating across borders, these areas represent significant execution challenges.

On the infrastructure side, funding supports continued development of AllScale’s passkey-based wallet system, paymaster-subsidized transactions, and integration with additional blockchains. These components require constant auditing and updates to maintain security standards, especially as user activity grows. Ensuring predictable settlement times and error recovery processes is a key benchmark for platforms serving microbusinesses and freelancers who rely on predictable cash flow.

The company also plans to allocate resources toward expanding into regions with high remittance volumes and underbanked populations. AllScale’s stated focus on Africa and upcoming entry into Latin America align with demand for low-fee, fast-settlement payment tools. However, expansion into new jurisdictions also introduces regulatory and licensing complexity. The seed funding is expected to support the legal, compliance, and risk-monitoring work required to operate responsibly in these markets.

Finally, investors have emphasized AllScale’s potential to operationalize emerging use cases such as machine-to-machine payments and AI-directed financial workflows. While these applications remain nascent, the funding enables AllScale to continue experimenting and building partnerships without diverting resources from its core payment functionality. The outcome will depend on the company’s ability to balance innovative development with practical, user-centered improvements.

Overall, the seed round gives AllScale room to stabilize its infrastructure, pursue targeted expansion, and invest in compliance systems, areas essential for a self-custody neobank working toward sustained, regulated growth.

What Is the Broader Market Setting?

Industry analytics firms estimate that stablecoins surpassed $300 billion in market capitalization in 2025, supported by strong growth in remittances and business payment flows. AllScale addresses the 3–5% fees and extended settlement periods common in traditional remittance systems.

While AllScale operates in a market dominated by stablecoin providers like Circle and Tether, its model combines self-custody with neobank-style tooling. This structure may offer greater autonomy for small businesses, though it also introduces user-side responsibilities around key management and compliance.

Despite growing adoption, stablecoin platforms continue to face regulatory scrutiny, particularly regarding KYC/AML obligations and jurisdictional licensing. AllScale’s compliance strategy will be central to scaling its services across multiple regions.

Pang emphasizes solutions to real user issues, such as freelancer payment delays, rather than growth metrics alone.

Conclusion

AllScale's $5 million seed round, led by Yzi Labs and backed by several venture firms, will fund expansion of its stablecoin-based neobank. Features such as self-custody wallets, invoicing tools, and AI-driven automation aim to address cross-border payment challenges for underserved groups. With more than 50,000 wallets created, the company has shown early traction.

The investment reflects continued interest in stablecoin-based financial tools. However, long-term adoption will depend on regulatory clarity, user education, and the company’s ability to maintain secure, low-friction self-custody experiences.

Sources

• CoinTelegraph PR: Yzi Labs Funding Announcement
• AllScale X: Funding Announcement