Lede
VelaFi, a financial infrastructure company specializing in stablecoin-based solutions, has successfully concluded a $20 million Series B funding round. This latest injection of capital was led by venture firms XVC and Ikuyo, marking a significant milestone for the firm as it continues to scale its operations. Operating under the umbrella of Galactic Holdings, the company has now accumulated a total funding amount exceeding $40 million since its inception.
The primary objective of this fresh capital is to bolster VelaFi’s enterprise-level payment and settlement services. Established in 2020, the company has positioned itself as a critical bridge in the digital finance space. By utilizing stablecoin protocols, VelaFi aims to modernize traditional financial workflows that have historically been plagued by inefficiency and high costs. The Series B funding will be directed toward various strategic initiatives, including the enhancement of its core infrastructure to better serve a global client base that requires reliable cross-border transaction capabilities.
As the company moves forward, this funding round underscores the growing interest from institutional investors in infrastructure that facilitates the integration of blockchain technology with traditional banking systems. VelaFi’s ability to secure substantial capital reflects the demand for robust platforms that can manage the complexities of modern treasury operations and multi-currency transfers in an increasingly digitized global economy.
Context
Since its founding in 2020, VelaFi has focused on developing a comprehensive payments infrastructure designed to facilitate seamless connections between local banking systems, global transfer networks, and emerging stablecoin protocols. The company’s service suite is broad, encompassing several key financial functions required by modern enterprises. These services include the following:
- Fiat on- and off-ramps to bridge the gap between traditional currency and digital assets.
- Cross-border payment solutions to streamline international trade.
- Foreign exchange workflows designed for efficient currency conversion.
- Multi-currency treasury operations for better management of corporate liquidity.
VelaFi initially concentrated its operational efforts within Latin America, a region where digital asset adoption has historically been high due to local economic conditions. This early focus allowed the company to refine its technology in a demanding market before embarking on a broader international expansion strategy. Following its success in Latin American markets, the company successfully extended its reach into the United States and various markets across Asia.
The company’s infrastructure is delivered through a versatile platform and via APIs, allowing for deep integration into existing corporate systems. This technical flexibility has been central to VelaFi’s growth, enabling it to serve as a foundational layer for businesses that need to interact with both legacy financial institutions and the modern digital asset ecosystem without maintaining complex, separate architectures for each.
Impact
The expansion of VelaFi into the Japanese market in October represents a significant shift in its geographic focus and a deepening of its involvement in trade finance. As part of this move, the company has committed to serving as a co-organizer of the Stablecoin Settlement Association. This initiative is specifically designed to modernize Japan’s trade finance infrastructure, indicating a move toward integrating stablecoins into high-level industrial and commercial settlements within one of the world’s largest economies.
This expansion comes amid a period of intense activity in the stablecoin sector, particularly in regions where VelaFi established its roots. In Latin America, the adoption of stablecoins has reached notable levels. Between July 2024 and the end of June 2025, stablecoin purchases accounted for more than 50% of all exchange-related transactions involving the Argentine peso, Colombian peso, and Brazilian real. This data highlights a growing reliance on dollar-pegged assets for both retail and commercial use in the region.
Furthermore, institutional activity in the stablecoin space has been accelerating. For instance, in November, Tether invested in the firm Parfin to broaden the utility of USDt within Latin America’s institutional digital asset market. These developments demonstrate a competitive landscape where infrastructure providers like VelaFi are increasingly vital. The convergence of retail demand for stablecoins and institutional investment in settlement platforms suggests a transformation in how cross-border value is transferred and stored globally.
Outlook
VelaFi plans to utilize its new capital to further its geographic expansion and secure necessary licensing across various international jurisdictions. A significant portion of its future efforts will focus on the continued development of payment and settlement infrastructure specifically tailored for cross-border business use. By strengthening its presence in the United States and Asia, while maintaining its foothold in Latin America, the company aims to provide a unified global network for stablecoin-based transactions.
However, the path forward involves navigating a complex and evolving regulatory landscape. While adoption is growing, financial authorities in several regions have expressed concerns regarding the rapid proliferation of stablecoins. For example, Mexico’s central bank recently cautioned that stablecoins could pose risks to financial stability. These concerns are rooted in the rapid growth of the sector, its increasing integration with traditional financial systems, and potential regulatory gaps that might facilitate market stress or arbitrage.
Despite these challenges, the initiative in Japan to modernize trade finance suggests that some jurisdictions are looking for ways to harness the technology within controlled frameworks. VelaFi’s participation in the Stablecoin Settlement Association will likely serve as a blueprint for how the company interacts with national regulators and industry bodies in the future. As the company expands its licensing and technical capabilities, its success will depend on its ability to provide secure, compliant infrastructure that addresses the stability concerns raised by central banking authorities while meeting the growing demand for efficient global payments.
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