COINOTAG News, December 8, reported that AllScale, described as the world’s first self-custodial stablecoin digital bank, has completed a seed round financing totaling $5 million. The round was led by YZi Labs, Informed Ventures, and Generative Ventures, with additional strategic participants.

The fresh financing strengthens AllScale’s capital base as it accelerates the expansion of custody infrastructure and risk controls across multi-chain rails, aiming to meet evolving blockchain banking standards and regulatory expectations while sharpening its value proposition for institutional and retail crypto users.

Industry observers view the deal as a vote of confidence in self-custodial models and stablecoin digital banking, underscoring a trend toward secure, scalable crypto rails. With the funding, AllScale plans product enhancements, governance upgrades, and geographic expansion to support compliant digital banking services.