Velocity, a London-based startup, has raised $38 million in Series A funding to help businesses integrate stablecoins into their payment systems.
Washington DC, United States Jul 14, 2026 ALN: As stablecoin use surges globally, traditional finance is rushing to keep pace. Many businesses, though, are still getting up to speed on how to integrate dollar-pegged tokens into customer payments, and London-based startup Velocity—which on Tuesday announced a $38 million Series A funding round—is one of the firms helping them to do so.
“These are companies that do not understand that they can be using stablecoins to solve their problems. Those are the people we are going for,” said Rob Hadick, a general partner at the venture capital firm Dragonfly, which has carved out a niche in backing firms that facilitate fiat-to-bridge transactions.
Dragonfly and Firstmark led Velocity’s Series A round, which also included investments from Coinbase, Capital One Ventures, QED Investors, Activant Capital, Ripple, and Wintermute. Eric Queathem, founder and CEO of Velocity, declined to specify at what valuation his startup raised its most recent stash of capital.
Founded in 2025, Velocity aims to tap into the industry’s rapid expansion, with its name pointing to its goal of making payments faster through stablecoins. The company declined to name specific clients but said its customers include a mix of global merchants, payment providers, fintechs, and financial institutions.
Queathem has encountered the frustrations that arise when using traditional banking rails to settle cross-border transactions. Before Velocity, he spent the last nine years at payments technology company WorldPay, leading corporate strategy and acquisitions before launching their crypto and global payouts division. There, he saw that while consumer payments looked sleek, the underlying infrastructure was “awful.”
Velocity sees traditional banks and foreign exchange houses as its main competitors, rather than other payments startups. Hadick described Velocity as a model that moves beyond simpler use cases into the more complex treasury and cross-border settlement needs of large companies.
“What Velocity has built is what we think is the easiest, most comprehensive set of solutions for these businesses to come on-chain and to do [so] in a way that’s familiar to them,” Queathem told.
The company already operates in the United States, parts of Europe, and Australia, and plans to use the new capital to obtain licenses required to expand into Africa and Latin America. It will also invest in infrastructure for secure asset custody and develop features such as yield-generating stablecoin products.
Stablecoins have rapidly expanded over the past two years, extending beyond fintech and into Wall Street. Proponents say they enable faster cross-border payments and lower transaction costs, and venture investors have committed hundreds of millions of dollars to the sector over the past year. In June, Open Standard, a consortium of financial firms including Stripe, Visa, BlackRock, and more than 140 others, said it would launch its own stablecoin to compete with the market’s current leaders.
The increasing adoption of stablecoins can be attributed to several factors, including the desire for efficiency in transactions, the need for more stable digital currencies amid the volatility of cryptocurrencies, and the growing acceptance of blockchain technology in mainstream finance. Stablecoins, which are typically pegged to fiat currencies like the US dollar, provide a way to mitigate the price fluctuations that are common with other cryptocurrencies such as Bitcoin and Ethereum.
In the context of a global economy that is increasingly interconnected, the role of stablecoins in facilitating international trade and remittances cannot be overstated. Companies engaged in cross-border transactions often face significant delays and fees when using traditional banking systems. By utilizing stablecoins, these businesses can streamline their payment processes, reduce costs, and improve transaction speed. This potential for enhanced efficiency is particularly appealing to companies operating in emerging markets, where access to reliable banking services may be limited.
However, the rise of stablecoins is not without its challenges. Regulatory scrutiny has intensified as governments around the world seek to understand the implications of digital currencies on financial stability and consumer protection. In the United States, for example, lawmakers have been debating the need for a comprehensive regulatory framework for stablecoins. This has led to uncertainty in the market, as companies like Velocity navigate the evolving landscape of digital currency regulations.
Velocity's approach to addressing these challenges is to work closely with regulators and financial institutions to ensure compliance while also pushing the boundaries of what is possible with stablecoin technology. By focusing on building robust infrastructure for secure asset custody and developing innovative products, Velocity aims to position itself as a leader in the stablecoin space.
Moreover, the company’s expansion plans into Africa and Latin America highlight the growing demand for stablecoin solutions in regions where traditional banking systems may be less accessible. In many developing countries, remittances represent a significant source of income for families, and stablecoins could offer a more efficient and cost-effective means of transferring money across borders.
As Velocity continues to refine its offerings and expand its market presence, the implications for the broader financial landscape remain significant. If successful, the company could not only enhance the adoption of stablecoins among businesses but also contribute to the mainstream acceptance of digital currencies as a viable alternative to traditional payment methods.
In conclusion, the $38 million funding round secured by Velocity underscores the growing interest and investment in the stablecoin sector. With the backing of prominent venture capital firms and financial institutions, Velocity is well-positioned to capitalize on the increasing demand for efficient payment solutions. As the company works to educate businesses about the benefits of stablecoins and expand its operations globally, it may play a pivotal role in shaping the future of digital currency adoption and integration in the financial ecosystem.
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