Velocity secures $38 million in Series A funding for stablecoin transactions.
London fintech company Velocity has secured a $38 million Series A funding round aimed at assisting businesses in transferring money with stablecoins. This Series A round, led by Dragonfly and FirstMark, boosts the total funding for the two-year-old company to nearly $50 million.
Velocity develops treasury and settlement infrastructure for businesses interested in using stablecoins, which are dollar-pegged tokens that are becoming prevalent in payment systems. The funding announcement was made on Tuesday and was reported first by Fortune.
The investment round attracted a diverse group of investors. In addition to lead investors Dragonfly and FirstMark, participants included Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures, and Ripple, as stated in the company's announcement. Founder and CEO Eric Queathem did not disclose a valuation.
What Velocity Offers
The platform enables finance teams to hold, transfer, and settle funds using stablecoins. It connects this infrastructure with local banking networks, compliance, custody, and liquidity management. The proposition is that companies can achieve faster settlements without drastically changing their current treasury operations.
Founded in 2025, Velocity claims its clientele includes global merchants, payment providers, fintech companies, and financial institutions, though it chose not to disclose specific names. Queathem mentioned that the company views traditional banks and foreign-exchange firms as its main competitors rather than other payment startups.
Before establishing Velocity, Queathem spent nine years at the payments company WorldPay, where he was responsible for corporate strategy and initiated a division focused on crypto and global payouts. He noted that while the consumer aspect of payments appeared polished, the underlying international infrastructure was quite poor.
A Competitive and Rapidly Expanding Market
Over the past two years, stablecoins have transitioned from the crypto realm to mainstream finance. Supporters argue that they facilitate swifter and more cost-effective cross-border payments. Venture capitalists have invested hundreds of millions into this sector.
Velocity is among various firms striving to provide enterprises with stablecoin infrastructure. In June, a consortium that included Stripe, Visa, and BlackRock launched Open USD, a stablecoin targeting the current market leaders. Other startups, such as Flex, have also raised funds based on similar prospects.
Regulatory bodies are still defining the frameworks for this sector. The Bank of England has considered how strictly to regulate stablecoins, while Europe is issuing licenses to crypto firms under its MiCA framework. Even traditionally conservative banks are beginning to offer crypto services.
Currently, Velocity operates in the United States, select parts of Europe, and Australia. It intends to utilize the new funding to secure licenses in Africa and Latin America, enhance custody services, and introduce yield-generating stablecoin products. "The timing and technology are right for us to bring these features to market,” Queathem stated.
Other articles
The Honor Wild Robot Phone might boast top-tier specifications to support its novelty.
The Honor Robot Phone already showcased the most unusual camera design of the year, and recently leaked specifications indicate that the hardware surrounding its mechanical arm might be just as innovative.
Samsung's latest Flex Titanium technology may reduce the visibility of creases in foldable devices.
Samsung has recently unveiled its Flex Titanium technology for upcoming foldable devices, which promises reduced creasing, enhanced durability, and a thinner display.
Apple is interested in PrismML's on-device AI technology for the iPhone.
Apple is currently in preliminary discussions with PrismML, a company whose on-device AI compression technology reduces a 27B model to less than 4GB for operation on an iPhone. Apple has not provided any comments on this matter.
Russian hackers continue to infiltrate vital networks via overlooked routers.
State-sponsored Russian hackers are taking advantage of unmaintained routers to infiltrate vital infrastructure networks, leading agencies around the globe to advise organizations to upgrade old equipment and enhance fundamental network security measures.
Reflection has finalized a $1 billion AI computing agreement with Nebius.
Reflection has finalized a $1 billion AI computing agreement with Nebius for the latest Nvidia chips, marking its second significant capacity acquisition within a month due to increasing demand for open models.
Children in China are now prohibited from developing romantic feelings for chatbots.
China has prohibited emotional AI relationships that involve minors as regulators aim to reduce dependency on chatbots and tackle the nation's historically low birth rate.
Velocity secures $38 million in Series A funding for stablecoin transactions.
London-based fintech Velocity has secured $38 million in a Series A funding round, with Dragonfly and FirstMark as the leading investors, to provide enterprises with stablecoin treasury and settlement solutions.