In this episode of Stableminded, This Week in Fintech's stablecoin-focused series, Drew Rogers sits down with Raagulan Pathy, CEO of Kast, the stablecoin neobank building the infrastructure for when digital dollars become mainstream.

Raagulan brings deep expertise from Circle, where he witnessed firsthand the evolution of stablecoin infrastructure and USDC's growth before founding Kast. His journey began with a simple but profound observation: users want dollars that work everywhere, but the current ecosystem forces them to navigate complex multi-chain, multi-stablecoin friction that taxes every transaction.

Kast has evolved from a simple stablecoin card (V1) to "better than a bank" (V2), and now toward a comprehensive on-chain ecosystem built around USDK and USDKY stablecoins powered by M0. The company serves hundreds of thousands of users globally while learning hard lessons about scaling fintech infrastructure, from SMS pump fraud to complex compliance challenges that crypto founders rarely anticipate.

During the conversation, Raagulan reveals why building stablecoins purely for economics is "a trap." His approach with USDK solves actual user problems: "The user just wants a dollar. They don't really care whether it's USDC or USDT or whether that's on Ethereum or Solana." USDK functions as a universal bucket—users can deposit any stablecoin and withdraw any stablecoin at 0.1% fees versus the industry standard 1%.

The technical differentiation centers on M0's programmable infrastructure enabling true user experience innovation. Kast's upcoming non-custodial wallet will abstract away blockchain complexity entirely—users never think about gas fees, chain selection, or technical barriers. USDKY provides treasury-backed yields for savings while USDK handles payments, creating a complete digital dollar ecosystem.

Most compelling is Raagulan's long-term vision: by 2040, "30-50% of people will have stablecoins," requiring infrastructure that keeps transactions on-chain rather than forcing constant off-ramps to traditional banking. This drives Kast's Q3 launch of SME banking for global payroll, targeting 0-50 person companies that need seamless stablecoin and fiat interoperability.

His stress test for any stablecoin project cuts through the yield-chasing hype: "Track your business model forward and think what happens if the rate is cut to zero. Can you sustain this stablecoin business for reasons apart from yield?" Circle survived zero rates making 0.1% net—most current projects wouldn't.

The partnership with M0 demonstrates specialized infrastructure enabling innovation rather than generic competition. M0 provides Treasury-backed programmable stablecoin capabilities while Kast handles user experience and application development for their specific community.

Thank you to M0 for powering this season of Stableminded, Building Stablecoins. Learn more about building your own stablecoin at here.

Watch the full episode on YouTube below, or Spotify!