Velocity raises $38M as stablecoin infrastructure draws institutional backing

Stablecoin treasury infrastructure is attracting hundreds of millions in venture capital as enterprises shift cross-border payments onto blockchain rails.

Velocity, a London-based stablecoin treasury platform, raised $38 million in a Series A funding round led by Dragonfly and FirstMark, bringing total financing to nearly $50 million since its 2025 founding.

"Stablecoins are becoming a core layer of modern financial infrastructure rather than simply another payment option," Eric Queathem, founder and chief executive officer of Velocity, said.

The round included participation from Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures and Ripple. Velocity builds software that connects stablecoin networks with banking, custody, compliance and settlement systems, targeting enterprise finance teams, payment providers and financial institutions.

The funding comes as stablecoins processed an estimated $390 billion in annualized real-world payments in 2025, including about $226 billion in business-to-business transactions, according to a joint analysis by McKinsey and Artemis Analytics. B2B stablecoin payments rose 733 percent year over year, the data show.

Enterprise Demand Fuels Infrastructure Buildout

Velocity's platform enables businesses to hold, transfer and settle funds through regulated stablecoin payment infrastructure, offering faster settlements and lower cross-border transaction costs. The company has focused on solving treasury challenges faced by chief financial officers rather than targeting crypto-native users, Queathem said.

The investment round attracted participants from both traditional finance and digital assets. Dragonfly said Velocity developed a platform capable of connecting conventional banking systems with blockchain networks for global enterprises. QED Investors added that successful financial infrastructure typically integrates into established treasury workflows.

Velocity intends to use the new funding to expand banking partnerships and payment connectivity, pursue additional regulatory licenses and develop yield-bearing stablecoin products, the company said.

Institutional Giants Enter the Stablecoin Race

The funding round is the latest in a wave of investment in stablecoin infrastructure. In March, Mastercard announced it would acquire stablecoin infrastructure startup BVNK for up to $1.8 billion. Stripe completed its $1.1 billion acquisition of Bridge in 2025 and has since launched stablecoin accounts in 101 countries.

In June, a consortium of more than 140 companies including Visa, Mastercard, American Express, BNY, BlackRock and Standard Chartered launched Open Standard, an independent company that will issue a dollar-pegged stablecoin called Open USD. BNY also expanded its relationship with Circle to support USDC on its Digital Asset Custody platform, allowing institutional clients to mint and redeem the stablecoin through a regulated banking relationship.

Japan's three largest banking groups — MUFG, SMBC and Mizuho — announced in June they will jointly issue a stablecoin during the current fiscal year, with regulatory support from the Financial Services Agency.

The GENIUS Act, signed into law a year ago, created a federal framework for payment stablecoin issuers in the United States, while the European Union's stablecoin provisions under MiCA are now in force, providing regulatory clarity that has encouraged institutional participation.

This article is for informational purposes only and does not constitute investment advice.