On September 15, local time, stablecoin payments and treasury management company Velocity announced that it had secured an additional $10 million in Series A funding. The company said the extension brought its total Series A funding to $48 million, following the previously announced $38 million round. Participants in the investment included Visa Ventures, Circle Ventures, Ripple, and Haun Ventures. Velocity connects financial institutions and businesses to stablecoin services for settlement, liquidity management, and treasury operations without requiring them to replace their existing systems. The company said it provides capabilities to move funds in fiat currencies and stablecoins and connect to existing treasury management systems. Through these capabilities, it aims to create a structure for sending and settling funds outside banking hours. Reducing the burden of setting aside funds in advance for payments is another of the company's stated goals. The company said it plans to use the new funding to expand its platform and its business of providing stablecoin infrastructure to issuers, acquirers, payment service providers, financial institutions, and merchants. It said the investment reflected a shared view with its investors that broader use of stablecoins requires infrastructure connecting them to existing banking, treasury management, and settlement systems.
Velocity Raises Additional $10 Million from Visa, Circle, and Others to Expand Stablecoin Settlement Infrastructure
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For businesses to use stablecoins, they need not only to send funds quickly but also to manage those funds within their existing treasury operations. If Velocity achieves its goal of reducing banking-hour constraints and prefunding requirements, businesses may gain greater flexibility in managing funds tied up for payments. This investment provides capital to expand that connecting infrastructure. The amount raised does not, by itself, indicate the scale of use or the cost savings achieved.