Karat
Underwrites creators on audience data instead of FICO.
Financial services built for creators.
- Who holds it
- A sponsor bank behind the brand — not the app you signed up with — Partner bank (Grasshopper Bank, N.A.); Karat Visa credit card issued by Cross River Bank.
- The ledger
- Split between a program manager and the sponsor bank — the modular setup that broke in Synapse.
- If it fails
- Any claim runs through the sponsor bank, and only works if the two ledgers reconcile.
Derived from Karat’s regulation type and custody — a class of protection, not a guarantee. Limits and eligibility vary by scheme, balance and jurisdiction; confirm before you rely on it. What happens if a neobank shuts down →
The facts
| Category | traditional · freelancers & creators |
| HQ | Los Angeles, US |
| Founded | 2019 |
| Custody | Custodial |
| Regulation type | Partner-bank model |
| License detail | Partner bank (Grasshopper Bank, N.A.); Karat Visa credit card issued by Cross River Bank |
| Card | Visa · Business card |
| Cashback | Creator perks |
| Stablecoins | No |
| KYC | Yes |
| Active regions | North America |
| Founders | Eric Wei, Will Kim |
| Funding | ~$100M+ incl. debt |
Verified links: official site ↗
Common questions about Karat
What is Karat?
Karat is a fiat neobank built for freelancers & creators, headquartered in Los Angeles, US and founded in 2019. Your money is held custodially, so Karat or its partner bank holds the balance and you hold a claim on it. It operates on a partner-bank model (Partner bank (Grasshopper Bank, N.A.); Karat Visa credit card issued by Cross River Bank).
Does Karat have a card, and where can you use it?
It issues a Visa business card. It is available in North America.
Does Karat require KYC?
Yes. Karat requires identity verification (KYC) to open an account, as a partner-bank model.
What does Karat cost?
From the verified fields: cashback Creator perks. Cashback and yield are "up to" figures that change constantly and often depend on a paid plan — confirm current terms with Karat before relying on them.
Early investors
Head-to-head
Karat vs Found · Karat vs Lili
Peers
Chime · Wise · Varo · Current · SoFi · Ally Bank
Karat appears in
Neobanks running on someone else’s banking license (81) · Neobanks available in North America (126) · Neobanks for freelancers and creators (15) · Neobanks that issue a Visa card (182) · Neobanks in United States (66)
Figures compiled from public sources, for comparison only — not financial advice. "Up to" rates change constantly; always confirm with the issuer. Spotted an error? Suggest a fix.