KAST shifts to losses after growth spending; seeks revenue through trading and lending

KAST, a stablecoin payments and card platform, has shifted from near break-even to a loss after ramping up customer-acquisition spending, CEO Raagulan Pathy told CoinDesk Korea in an interview published June 2. The company's strategy is to absorb upfront losses on its KAST card to build a user base, then monetize through trading, lending, and additional services. Pathy said the assets backing its Reserve rewards yield 3.5–4%, with the company covering the shortfall, while stated reward rates range from 8–12% by membership tier in the interview—though KAST's August launch materials cited 6–12%, a discrepancy the company did not reconcile. Loss figures and total card-reward subsidies were not disclosed. Investors should watch for disclosure of the subsidy burden, traction in trading and lending revenue, and any clarification of the reward-rate gap.