Velocity raises $38 million to expand stablecoin payments tools

Velocity, a London-based payments startup, has raised $38 million in Series A funding to help businesses use stablecoins for payments and settlement, Fortune reported. The round comes as dollar-linked crypto tokens draw more attention from traditional financial firms and companies looking for faster cross-border payment options.

Dragonfly and Firstmark led the financing, according to Fortune. Coinbase, Capital One Ventures and Wintermute also invested, while Velocity founder and CEO Eric Queathem declined to disclose the company’s valuation.

Stablecoin tools for companies

Velocity was founded in 2025 and is building services that let businesses add stablecoins to their payment operations, Fortune reported. The company did not identify individual customers, but said it works with global merchants, payment providers, fintech firms and financial institutions.

Rob Hadick, a general partner at Dragonfly, told Fortune that Velocity is targeting companies that may not yet realize stablecoins could address payment problems. Dragonfly has backed companies working on the links between traditional money and crypto-based payment systems, according to Fortune.

Queathem told Fortune that Velocity aims to give companies a familiar way to move onto blockchain-based payment rails. The company’s name refers to its focus on speeding up payments through stablecoin infrastructure, according to Fortune.

Cross-border settlement focus

Queathem previously spent nine years at WorldPay, Fortune reported. He worked on corporate strategy and acquisitions before starting the company’s crypto and global payouts division.

At WorldPay, Queathem encountered problems with traditional banking systems used to settle cross-border transactions, according to Fortune. He told the publication that consumer payment experiences often appeared polished while the underlying infrastructure remained “awful.”

Velocity views banks and foreign exchange firms as its main rivals, rather than other payment startups, Fortune reported. Hadick said the company is working on more complex treasury and cross-border settlement needs for large businesses, moving beyond simpler stablecoin use cases.

Expansion plans

Velocity already operates in the United States, parts of Europe and Australia, according to Fortune. The company plans to use the new funding to secure licenses needed for expansion into Africa and Latin America.

The startup also plans to spend on infrastructure for secure custody of assets, Fortune reported. It is developing additional products, including stablecoin services that can generate yield.

Stablecoins have grown quickly over the past two years, expanding from fintech use cases into Wall Street, according to Fortune. Supporters say the tokens can make cross-border payments faster and reduce transaction costs.

Venture investors have put hundreds of millions of dollars into stablecoin-related companies over the past year, Fortune reported. In June, Open Standard, a group that includes Stripe, Visa, BlackRock and more than 140 other financial firms, said it planned to launch a stablecoin to compete with leading tokens in the market.

This story draws on original reporting from Fortune.