PhotonPay has secured US$40 million in a Series C funding round led by Blockchain Capital to expand its stablecoin-focused Financial Operating System (Financial OS).

The Hong Kong-based payments firm plans to use the funding to strengthen its multi-asset wallets, global card issuing capabilities, local clearing infrastructure and AI-driven financial services.

SBI Group joined the round as a new investor, while existing backers IDG Capital, GL Ventures and Lightspeed Faction made follow-on investments. Blacksheep Technology served as the exclusive financial adv.3+iser for the transaction.

PhotonPay reported an annualised transaction volume of US$65 billion as of August 2026.

It serves more than 200,000 business customers across over 200 countries and territories and holds 34 payment and financial licences and regulatory authorisations across the Americas, Europe and Asia.

In Hong Kong, PhotonPay’s entities hold a money service operator license and Securities and Futures Commission (SFC) licenses for Type 1, 4 and 9 regulated activities.

The company announced the SFC approvals in March 2026.

PhotonPay to expand stablecoin and payment infrastructure

PhotonPay will direct the new funding towards four areas: multi-asset wallets, global card issuing, local clearing infrastructure and an execution layer designed to support AI-driven financial transactions.

Its Financial OS connects stablecoin liquidity with traditional banking, foreign exchange, local clearing and card payment networks.

Through its multi-asset wallet, businesses can manage stablecoin and fiat balances, convert assets and make payments across supported financial networks.

PhotonPay currently offers local collection accounts in 17 markets and supports incoming payments in more than 60 currencies.

Its payout network covers over 100 payment routes, including local clearing systems, bank transfers and 74 major local e-wallets.

According to the company, approximately 97% of payouts reach recipients within hours or on the same day, while 68% arrive in real time.

PhotonPay also works with banking partners including J.P. Morgan, Standard Chartered and DBS, and connects to domestic payment systems such as Brazil’s Pix and Mexico’s SPEI.

In the past 12 months, the company issued 4.4 million cards, representing a 275% year-on-year increase.

Businesses and platforms can use its APIs to issue virtual and physical cards, configure spending controls and integrate card payments into their own software.

PhotonPay also provides embedded finance services to more than 100 enterprise and platform partners.

“Moving money across borders in seconds means little if it still takes days to put that capital to work,”

said Lewison Chen, Founder and CEO of PhotonPay.

“Stablecoins are accelerating global money movement, while local clearing and global card issuing connect that liquidity to local settlement and everyday business spending.”

PhotonPay develops AI-powered payment capabilities

PhotonPay is also developing financial infrastructure that would allow AI agents to access account information, check balances and initiate payments within predefined authorisation limits.

In May 2026, the company and Mastercard completed a live agentic payment demonstration in Hong Kong using a tokenised PhotonPay card.

Building on this, PhotonPay plans to support the Model Context Protocol (MCP), an open standard that connects AI systems with external tools and data sources.

This would allow developers and AI agents to access financial functions, including account information, card management and payment initiation, through standardised interfaces.

PhotonPay is also developing a policy-based execution framework designed to enforce authorisation rules, spending limits and transaction-level controls set by businesses.

Separately, the company is working on AI-assisted risk review capabilities to identify complex cases requiring human assessment.

Founded in 2015, PhotonPay said the new investment will help strengthen its clearing and compliance infrastructure in existing markets while supporting expansion into new jurisdictions.

The funding follows a Series B round led by IDG Capital in January 2026, when PhotonPay raised tens of millions of US dollars.

Featured image credit: Edited by Fintech News Hong Kong, based on image by mrsiraphol via Magnific