Velocity Secures $48M for Stablecoin Payments

London-based Velocity has secured an additional $10 million in funding, extending its Series A round to a total of $48 million and achieving a $200 million post-money valuation. This latest capital infusion saw participation from notable investors including Visa Ventures, Circle Ventures, and Ripple. The fresh funds are earmarked for developing infrastructure that will bridge stablecoins with established payment networks, settlement systems, and corporate treasury operations.

Velocity's platform is designed to allow payment companies and banks to leverage stablecoins for settlement, liquidity, and treasury functions without needing to overhaul their current systems. The company is strategically focusing on the crucial layer that connects issuers, card networks, acquirers, and merchants. This move addresses the growing trend of stablecoin usage, which has expanded beyond crypto-exchange transfers to encompass payments, cross-border transactions, and corporate treasury activities.

CEO Eric Queathem, drawing from his experience at Worldpay, identified a critical gap in the market: while consumer-facing payment experiences have advanced, the underlying back-end infrastructure has lagged. Velocity aims to rectify this by fixing the foundational layer that supports payment operations. The involvement of entities like Visa Ventures highlights a strategic interest in integrating blockchain-based assets, like stablecoins, into the existing financial ecosystem to streamline value movement.