Hong Kong-based fintech startup AllScale has closed a $1.5 million funding round aimed at making stablecoin solutions for small businesses more accessible and compliant. The company positions itself as addressing the “last mile” challenge in enterprise stablecoin adoption, targeting pain points that have traditionally kept small and medium-sized businesses (SMBs) from leveraging cryptocurrency-based payment systems.
Funding and backing
The funding round attracted a diverse group of investors, including DraperDragon, Amber Group, Y2Z Capital, KuCoin Ventures, Oak Grove Ventures, Blockbooster, and Movemaker. AllScale is also a member of the Hong Kong Cyberport Incubation Program, signalling institutional support for the territory’s tech development efforts.
The timing of the raise coincides with what the company describes as favorable regulatory developments. The US Senate passed the GENIUS Act in June 2025, while Hong Kong’s Stablecoin Ordinance is set to take effect in August, potentially creating clearer frameworks for small businesses to operate stablecoin solutions within.
Addressing market gaps
AllScale’s founding team brings experience from established fintech and crypto companies, including Kraken, Block (formerly Square), Capital One, OKX, and TikTok.
The company argues that while stablecoin infrastructure has matured in areas such as issuance, payment channels, anti-money laundering (AML), and fiat on/off ramps, significant barriers remain for traditional businesses.
“Stablecoins are no longer a niche technology—they’re the foundation for the next wave of global commerce,” said AllScale co-founder Shawn Pang. “We’re thrilled to help businesses of all sizes unlock stablecoin benefits with compliance, security, and simplicity at the forefront.”
The company points to steep learning curves, high integration costs, transaction risks, and complex compliance and accounting processes as key barriers keeping SMBs from adopting crypto-based payment systems.
Product portfolio
AllScale’s product suite encompasses three main areas: stablecoin invoicing, social commerce capabilities, and payroll management. The social commerce component allows businesses to sell directly through messaging platforms including Telegram, Line, and WhatsApp, with integrated contract and payment management.
The invoicing system lets businesses send stablecoin-based invoices through simple links, while the payroll tool offers what the company describes as “intuitive payroll management,” enabling businesses to monitor staff payment status and frequency.
All products feature built-in AML compliance and on/off-ramp functionality, addressing regulatory concerns that often complicate cryptocurrency adoption for traditional businesses.
Market context and claims
AllScale promotes several advantages of stablecoin solutions for small businesses, including 24/7 global payment capabilities with minimal fees, value stability through USD pegging, accessibility for unbanked populations, and programmability for AI-driven commerce applications.
However, the cryptocurrency payments market remains complex, with ongoing regulatory uncertainty in many jurisdictions and technical challenges around user experience and compliance. Traditional payment systems, while slower and more expensive for international transfers, benefit from established legal frameworks and widespread merchant acceptance.
The company hosted the Scale Stablecoin Summit in Hong Kong on June 26, 2025, suggesting efforts to build industry connections and thought leadership in the sector.
Technical approach
AllScale describes its offering as a “one-stop, end-to-end toolkit for stablecoin scenarios,” aimed at lowering barriers for traditional SMBs to implement cryptocurrency-based payment systems.
The company emphasises compliance and security features, though specific technical details about security implementations and regulatory compliance mechanisms were not detailed in the announcement.
The platform integrates multiple aspects of the stablecoin payment chain, from initial transaction processing to final settlement, positioning itself as a comprehensive solution rather than a point solution for specific use cases.
Industry outlook
The stablecoin market has experienced significant growth, with transaction volumes increasing across major tokens. However, enterprise adoption remains limited, particularly among smaller businesses that may lack technical expertise or regulatory guidance to implement cryptocurrency payment systems safely.
AllScale’s approach—offering managed stablecoin solutions for small businesses—addresses a real market need, though success will likely depend on execution, compliance, user experience, and the broader regulatory landscape.
The company’s Hong Kong base provides access to Asia-Pacific markets while operating under evolving but increasingly defined regulatory frameworks for digital assets. The upcoming Stablecoin Ordinance may provide additional clarity for companies like AllScale operating in the territory.
As stablecoin infrastructure continues to mature, tools that connect traditional business operations with crypto systems could see strong demand—especially for cross-border payments, where conventional banking remains costly and slow.
(Photo by AllScale)
See also: China could test Yuan stablecoin Hong Kong route but faces headwinds – Morgan Stanley
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