Velocity lands $38M to speed business payments with stablecoins

London fintech Velocity has raised a $38 million Series A to help businesses move money with stablecoins, pushing its total funding to nearly $50 million just two years after launch. The round was led by Dragonfly and FirstMark, and announced on Tuesday, as Fortune first reported.

The company builds treasury and settlement infrastructure for businesses that want to use dollar-pegged tokens in payments. Its platform lets finance teams hold, move, and settle funds with stablecoins while linking into local banking rails, compliance, custody, and liquidity management. The idea is to speed up settlement without forcing companies to rebuild how their treasury operations already work.

Velocity said its customers include global merchants, payment providers, fintechs, and financial institutions, though it declined to name them. Founder and CEO Eric Queathem also declined to disclose the company’s valuation.

The investor list goes well beyond the two lead firms. According to the company, participants included:

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• Activant Capital
• Capital One Ventures
• QED Investors
• Coinbase Ventures
• Wintermute Ventures
• Ripple

Stablecoin infrastructure is getting crowded

Velocity is entering a market that has become far more competitive as stablecoins move deeper into mainstream finance. Supporters argue they can make cross-border payments faster and cheaper, and venture investors have already poured hundreds of millions into the sector.

In June, a consortium including Stripe, Visa, and BlackRock launched Open USD, a stablecoin aimed at the market’s current leaders. Other startups, including Flex, have also raised money around similar enterprise pitches.

Queathem, who spent nine years at WorldPay leading corporate strategy and launching a crypto and global payouts division, said he sees traditional banks and foreign-exchange firms as Velocity’s main competitors rather than other payments startups.

“The timing and technology are right for us to bring these features to market.”

Where Velocity plans to expand next

Velocity, founded in 2025, currently operates in the United States, parts of Europe, and Australia. It plans to use the new funding to secure licences in Africa and Latin America, expand its custody offering, and add yield-generating stablecoin products.

That expansion will play out as regulators continue to define the market. The Bank of England has been weighing how tightly to regulate stablecoins, while Europe is licensing crypto firms under its MiCA framework. Even traditionally cautious banks are now offering crypto services.