Velocity raises $38M to move business money with stablecoins

London fintech Velocity has raised a $38 million Series A to help businesses move money with stablecoins. The Velocity Series A, led by Dragonfly and FirstMark, brings the two-year-old company’s total funding to nearly $50 million.

Velocity builds treasury and settlement infrastructure for companies that want to use stablecoins, the dollar-pegged tokens now spreading across payments. It announced the raise on Tuesday, as Fortune first reported.

The round drew a wide investor list. Alongside lead backers Dragonfly and FirstMark, it included Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures, and Ripple, per the company’s announcement. Founder and chief executive Eric Queathem declined to give a valuation.

What Velocity does

The platform lets finance teams hold, move, and settle funds using stablecoins. It ties that infrastructure to local banking rails, compliance, custody, and liquidity management. The pitch is that companies get faster settlement without overhauling how their treasury already works.

Velocity, founded in 2025, says its customers include global merchants, payment providers, fintechs, and financial institutions. It declined to name them. Queathem said the company treats traditional banks and foreign-exchange houses as its main rivals, rather than other payments startups.

Queathem spent nine years at the payments firm WorldPay before starting Velocity. There he led corporate strategy and launched a crypto and global payouts division. He said the consumer side of payments looked slick, but the underlying cross-border infrastructure was “awful.”

A crowded, fast-growing market

Stablecoins have moved from crypto into mainstream finance over the past two years. Backers say they enable faster cross-border payments at lower cost. Venture investors have poured hundreds of millions into the sector.

Velocity is one of several firms racing to sell enterprises stablecoin plumbing. In June, a consortium including Stripe, Visa, and BlackRock launched Open USD, a stablecoin aimed at the market’s current leaders. Other startups, such as Flex, have raised on similar promises.

Regulators are still setting the rules. The Bank of England has weighed how tightly to govern stablecoins, while Europe licenses crypto firms under its MiCA regime. Even conservative banks now offer crypto services.

Velocity currently operates in the United States, parts of Europe, and Australia. It plans to use the new money to win licences in Africa and Latin America, build out custody, and add yield-generating stablecoin products. “The timing and technology are right for us to bring these features to market,” Queathem said.