Stablecoin payments startup Velocity has raised another $10 million, bringing its Series A funding to $48 million at a $200 million post-money valuation. The latest investment includes major financial and crypto companies Visa, Circle and Ripple, along with Haun Ventures, Translink Capital and Mirana Ventures.
The London-based company is building infrastructure that allows banks and payment companies to use stablecoins for settlement, liquidity and treasury operations. The funding comes as stablecoins have grown beyond crypto trading and are increasingly being used for payments and cross-border money movement.
The additional funding follows Velocity’s $38 million Series A announced in July. CEO Eric Queathem said the original round was oversubscribed.
Velocity is targeting the infrastructure behind stablecoin payments rather than trying to replace familiar consumer payment methods. Its platform is designed to connect blockchain-based money with the systems already used by banks and payment companies.
Queathem, who previously worked at Worldpay, said the idea came partly from seeing how much investment had gone into improving the consumer side of payments while the back-end infrastructure remained complicated.
Source: velocity.xyz
That approach has attracted attention from Visa. The payments giant said stablecoins are playing an increasingly important role in changing how value moves through its ecosystem. Rather than expecting consumers to abandon cards and adopt stablecoin wallets, Velocity sees stablecoins working behind the scenes to handle funding and settlement.
Velocity Chief Growth Officer Matt Larson said consumers may not even notice the change. Instead, stablecoins could increasingly become part of the infrastructure that moves money between card networks, issuers, acquirers and merchants.
The company believes the opportunity could become much larger as corporations begin holding part of their funds on blockchain networks. That would create demand for services dealing with reconciliation, treasury management and the connection between traditional financial systems and digital assets.
Stablecoins have expanded rapidly in recent years. Their combined circulation has moved beyond $300 billion, according to figures cited in the source material, as their use spreads into payments, international transfers and corporate treasury operations.
For Velocity, the goal is therefore not simply to create another crypto payment product. It is building a layer that financial institutions can use without completely replacing the systems they already depend on.
The participation of Visa, Circle and Ripple also highlights the growing interest among established financial and digital-asset companies in stablecoin infrastructure. As more businesses explore blockchain-based settlement, companies such as Velocity are positioning themselves around the less visible but critical systems needed to move money between traditional finance and digital assets.
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