Telcoin Secures $25M Funding for Its Regulated Digital Banking Initiative

Telcoin, a blockchain-based financial services company, has raised $25 million in an ongoing pre-series A funding round to support the launch of its Telcoin Digital Asset Bank. The capital will help meet regulatory requirements for the bank's operations, which are slated to begin later this year following final approval from Nebraska authorities. This move marks a significant step in integrating blockchain technology with established banking systems, allowing the company to connect a growing digital economy valued at $4 trillion to traditional financial infrastructures.

Telcoin operates as a multinational fintech serving users in 171 countries, combining blockchain, telecommunications, and banking to deliver secure, self-custodial payments and services through its decentralized infrastructure. With this latest funding, the firm aims to expand its offerings under a regulated framework.

Details of the Funding and Bank Capitalization

The $25 million infusion comes as part of a broader effort to capitalize Telcoin Digital Asset Bank, which received conditional approval earlier this year for a Nebraska Digital Asset Depository Institution charter. This charter, the first of its kind in the U.S., explicitly permits the bank to link customers to decentralized finance (DeFi) protocols while adhering to strict regulatory standards. The funding ensures compliance with capital thresholds set by the Nebraska Department of Banking and Finance, paving the way for the bank's opening.

Investors in the round include figures like Matt Maser and Tom Kaiman from Otter & Co. Capital Holdings, who see potential in fostering trust between stablecoins and everyday banking. Maser noted the local impact, stating, “What excites us about Telcoin is the potential impact right here at home. There’s enormous value in bringing stablecoins into a banking environment that banks and their customers can trust. This isn’t just about faster and safer transactions in Nebraska, but ensuring that the U.S. remains competitive on the global financial stage.” Kaiman added, “Telcoin is redefining what’s possible in banking. This isn’t just about digital money — it’s about reimagining how people everywhere connect to their finances.” 

The raise follows a period of active engagement with regulators and industry stakeholders. For instance, Telcoin executives testified before the Nebraska Department of Banking and Finance in December 2024 during a public hearing, outlining their vision for the bank. By February 2025, the company announced conditional approval, positioning it as Nebraska's first digital asset bank and emphasizing job creation in the state.

Progress on Regulatory and Legislative Fronts

Telcoin's journey toward this milestone began in 2021 when it contributed to authoring and passing the Nebraska Financial Innovation Act, which established the legal foundation for digital asset depositories. This state-level initiative has since intersected with federal developments, such as the GENIUS Act, which passed in July 2025 and provides a regulatory structure for stablecoins. The act's approval has been described as a watershed moment, enabling companies like Telcoin to advance their plans with greater clarity.

Throughout 2025, Telcoin has participated in key industry events to build momentum. In March, CEO Paul Neuner spoke at the DC Blockchain Summit on stablecoin regulation. By April, the company welcomed Nebraska's leadership in digital payments, noting its role as the first approved entity under the new framework. In June, executives commented on the GENIUS Act's implications for stablecoin issuers, stressing the importance of compliance and interoperability. Later, in August, the focus shifted to supporting community banks through correspondent services, allowing smaller institutions to offer digital asset products without heavy capital investments.

More recently, Neuner joined panels at Flyover Fintech and DAS London, discussing how banks can bridge traditional finance and DeFi. These efforts underscore a steady progression from legislative advocacy to operational readiness, with the bank now awaiting final charter approval.

Introducing eUSD and Multi-Currency Offerings

A core component of the bank's launch is eUSD, a bank-issued “Digital Cash” stablecoin pegged to the U.S. dollar. This product aims to provide a regulated alternative to existing stablecoins, focusing on usability for daily transactions like payments and remittances. Telcoin CEO Paul Neuner explained the rationale: “Telcoin is betting that consumers really just want usable digital dollars, not a bunch of different branded USD stablecoins.” Unlike the offshore or non-bank alternatives in the market today, eUSD will give people a regulated, trustworthy way to use digital dollars at scale.”

Alongside eUSD, the bank plans to offer multi-currency eXYZ options, targeting cross-border remittances as an initial use case. By reducing friction in international transfers, these stablecoins could lower costs and speed up processes compared to conventional methods. The initiative builds on Telcoin's global licenses, placing the bank at the hub of an interconnected financial network.

Implications for Banking and Global Finance

This development positions Telcoin to serve not only individual users but also community banks, acting as a correspondent to help them integrate digital assets. For smaller institutions in states like Nebraska, Kansas, or Missouri, partnering could mean accessing stablecoin services without prohibitive capital outlays. On a larger scale, the bank charter supports U.S. competitiveness in global finance, as stablecoins gain traction amid evolving regulations.

Neuner highlighted the timing's significance, aligning with U.S. digital asset legislation. As Telcoin moves toward full operations, it continues to engage with policymakers and industry groups, such as through contributions to GSMA whitepapers on stablecoin adoption in telecommunications. This collaborative approach could set precedents for how blockchain enhances everyday banking, from remittances to broader financial inclusion.

Sources:

• _{BusinessWire — Telcoin Raises $25 Million to Launch Regulated Digital Asset Bank: https://www.businesswire.com/news/home/20251014028078/en/Telcoin-Raises-%2425-Million-to-Launch-Regulated-Digital-Asset-Bank}
• _{BusinessWire — Telcoin Granted Approval to Open Nebraska’s First Digital Asset Bank: https://www.businesswire.com/news/home/20250204461633/en/Telcoin-Granted-Approval-to-Open-Nebraskas-First-Digital-Asset-Bank}