Velocity, a stablecoin treasury and settlement platform launched in 2025, has successfully raised $38 million in a Series A funding round led by Dragonfly and FirstMark. The latest investment brings the total capital raised by the company to nearly $50 million since its inception last May. Unlike many players in the crypto space, Velocity is targeting CFOs and corporate treasury teams, offering a platform designed to integrate stablecoin infrastructure with existing banking systems. This approach aims to facilitate near-instant cross-border settlements and minimize prefunding requirements, all while maintaining the existing treasury workflows of enterprises.
Eric Queathem, the founder and CEO of Velocity, emphasized the company’s commitment to treasury professionals, stating that stablecoins are evolving from mere payment tools to essential components of global financial management. The backing from notable investors, including Capital One Ventures and Coinbase Ventures, highlights a shift in perception among traditional financial institutions towards stablecoins, particularly as regulatory frameworks begin to take shape in the U.S. and Europe. This could indicate a broader acceptance of stablecoin solutions within mainstream finance.
Velocity is entering a competitive landscape, facing established cross-border payment providers like Nium and Airwallex, as well as stablecoin-focused firms such as Bridge and BVNK. The key challenge for Velocity will be demonstrating that its stablecoin-based solution offers tangible advantages in terms of cost and speed over traditional banking methods. The company plans to allocate the new funds towards expanding its banking and payments network, enhancing product development, and strengthening regulatory capabilities to meet growing enterprise demand.
As the stablecoin market continues to evolve, the participation of Capital One Ventures in this funding round serves as a significant indicator of changing dynamics within the financial sector. With regulatory approvals and strategic partnerships on the horizon, Velocity’s ability to establish itself as a leader in stablecoin treasury solutions will be closely watched by investors and industry stakeholders alike.
Eric Queathem, the founder and CEO of Velocity, emphasized the company’s commitment to treasury professionals, stating that stablecoins are evolving from mere payment tools to essential components of global financial management. The backing from notable investors, including Capital One Ventures and Coinbase Ventures, highlights a shift in perception among traditional financial institutions towards stablecoins, particularly as regulatory frameworks begin to take shape in the U.S. and Europe. This could indicate a broader acceptance of stablecoin solutions within mainstream finance.
Velocity is entering a competitive landscape, facing established cross-border payment providers like Nium and Airwallex, as well as stablecoin-focused firms such as Bridge and BVNK. The key challenge for Velocity will be demonstrating that its stablecoin-based solution offers tangible advantages in terms of cost and speed over traditional banking methods. The company plans to allocate the new funds towards expanding its banking and payments network, enhancing product development, and strengthening regulatory capabilities to meet growing enterprise demand.
As the stablecoin market continues to evolve, the participation of Capital One Ventures in this funding round serves as a significant indicator of changing dynamics within the financial sector. With regulatory approvals and strategic partnerships on the horizon, Velocity’s ability to establish itself as a leader in stablecoin treasury solutions will be closely watched by investors and industry stakeholders alike.
Source: The Fintech Times
