The use of stable currency in global payments continues to increase, and infrastructure companies around business access to this track are accelerating their financing. The London-based Velocity announced the completion of the $38 million A round of financing, the objective of which is to help businesses, payment service providers and financial institutions to access stable currency to the daily payment and cross-border settlement processes.
Dragonfly.
This round of financing was led by Dragonfly, with the participation of Coinbase, Capital One Ventures and Wintermute. Eric Queathem, founder and chief executive officer of Velocity, did not disclose the present valuation of the financing.
According to Rob Hadick, a Dragonfly partner, many businesses still do not know how the stabilization currency can actually solve the problem of actual payments, which is exactly the client group that Velocity is trying to reach.
Cross-border business-oriented settlements
Founded in 2025, the core direction is to improve payment and settlement efficiency in stable currencies. The company did not disclose a specific list of customers, but indicated that the customers covered global businesses, payment providers, financial technology companies and financial institutions.
Quathem, who had been working for nearly nine years at the payment technology company WorldPay, was responsible for business strategy, mergers and acquisitions, and encryption and global payments. He indicated that the consumer payment experience appeared to be more mature, but the bottom-level cross-border settlement infrastructure remained inefficient.
Companies believe that the main competitors are not other start-ups for payment, but traditional banking systems and foreign exchange services. According to investors, the focus of Velocity ' s products is not just a simple payment scenario, but also more complex financial management and cross-border liquidation needs of large enterprises.
Plan to expand Africa and Latin America
Velocity is currently operating in the United States, parts of Europe and Australia. The company indicated that the new financing would be used primarily to apply for more licences to access African and Latin American markets.
At the same time, Velocity will also invest in a safer asset hosting infrastructure and the development of a stable currency product that will generate revenue.
Over the past two years, the application of the stabilization currency has expanded rapidly, from the area of financial technology to Wall Street. Proponents believe that a stable currency can reduce the time spent on cross-border payments and transaction costs. In June of this year, the Open Standard Coalition, involving more than 140 institutions such as Stripe, Visa, Beled, also indicated that it would launch its own stabilization currency to compete with existing market headline projects.