Velocity raises $38M to build enterprise stablecoin rails

Velocity has raised $38 million in a Series A funding round led by Dragonfly and FirstMark to expand software that connects dollar-pegged stablecoins with banks, custody services, compliance checks and settlement systems for enterprises.

Participants in the round include Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures and Ripple. According to the company, the funds will be used to grow its banking and payments network, develop new products and strengthen regulatory and compliance capabilities.

Founded in 2025, Velocity builds infrastructure for corporate treasury teams, payment providers, fintech firms and banks that use stablecoins for cross-border settlement and internal liquidity management. The platform links on-chain payment rails to off-chain custody and bank settlement to speed transfers and automate compliance checks.

The company plans to deepen integrations with custody and banking partners and expand the list of supported stablecoins and settlement corridors. The Series A brings Velocity’s total funding to nearly $50 million since launch, according to its filings.

The enterprise stablecoin sector has seen several recent financings. One company raised $94 million in a Series A to expand a stablecoin-based foreign exchange network focused on Asia and Latin America. Another provider secured $32 million to grow a cross-border payments platform that combines banking, foreign exchange and stablecoin settlement. A separate $5.2 million round funded a startup building stablecoin issuance and settlement infrastructure with a programmable execution layer on Bitcoin.

A joint analysis by McKinsey and Artemis Analytics estimated annualized real-world stablecoin payment volume at about $390 billion in 2025, with roughly $226 billion tied to business-to-business transactions. Banks, card networks and large fintech companies have backed new dollar-pegged stablecoin initiatives and invested in supporting technology.

Velocity competes with other providers offering rails and services for enterprises that require compliance controls, banking connections and liquidity management around stablecoins. The company says it will work with investor partners and market participants to scale stablecoin-based settlement options for cross-border business payments.