Key Highlights
- Circle and Ripple are among the investors in Velocity’s new $10 million funding extension, alongside Visa Ventures, Haun Ventures.
- The new funding brings Velocity’s total Series A funding to $48 million, just one month after the company raised its initial $38 million Series A.
- Velocity will use the funding to expand its stablecoin infrastructure, helping businesses, financial institutions and payment providers manage settlement.
Circle Ventures and Ripple are among the investors backing a new $10 million funding extension for Velocity, a stablecoin payments and treasury platform.
According to the company’s September 15 announcement, the extension brings Velocity’s total Series A funding to $48 million and gives it additional capital to expand its stablecoin payments infrastructure.
Visa Ventures, Haun Ventures, Translink Capital and Mirana Ventures also joined Circle and Ripple in the latest funding round.
Funding follows $38 million Series A
The company said this new money is coming only a month after it announced a $38 million Series A, showing that the company has continued to attract investors around its stablecoin infrastructure.
At the center of Velocity’s business is a simple problem: moving money between businesses, banks and payment companies can take time and often requires money to be placed in different accounts before a payment can be completed. Velocity is building infrastructure that lets companies use stablecoins for settlement, liquidity and treasury operations while keeping the financial systems they already use.
In simple terms, the company wants stablecoins to work in the background of existing payment systems rather than forcing businesses to build a completely new setup. Its platform is designed to help money move more continuously, reduce the need for prefunding and allow settlement outside normal banking hours.
Investors bring payments experience
That approach is now attracting investors with deep links to the payments and stablecoin sectors.
Circle and Ripple are both involved in the development and use of stablecoins for payments and financial services, while Visa brings its large payments network into the group of investors supporting Velocity.
Eric Queathem, founder and CEO of Velocity, said the company has focused on improving how money moves through the payments system since it was founded.
“We are excited to welcome several new investors to Velocity, including Visa through Visa Ventures,” Queathem said. He added that the investors could provide insight as Velocity works on using stablecoins in the payments system.
Visa expands stablecoin payments push
Visa’s investment comes as stablecoins become a larger part of its own payment plans. Recently, the company said that more than 160 stablecoin-linked card programs were live worldwide in its fiscal second quarter, while payment volume on those programs rose nearly 200% year over year.
Visa also said stablecoin settlement volume had passed a $20 billion annualized run rate, more than 15 times the level recorded a year earlier. The growth points to the increasing use of stablecoins within payment systems, while also bringing new funding needs for companies running these programs.
One issue Visa has pointed to is the need for card programs to fund daily settlement obligations before collecting money from cardholders. Visa has also described a stablecoin-denominated revolving credit facility developed with Credit Coop and secured by settlement receivables.
Rubail Birwadker, Visa’s Global Head of Growth Products and Strategic Partnerships, said stablecoins are taking on a bigger role in how value moves through the Visa ecosystem.
The company’s interest also comes as payment firms look for ways to make stablecoin settlement work with existing financial systems. Just last week, Velocity partnered with MVB Financial for a Visa Direct pilot that supports stablecoin-enabled funding and settlement for eligible payouts.
Earlier investors remain involved
According to the press release, Ripple was already an investor in Velocity’s earlier $38 million Series A, which was led by Dragonfly and FirstMark. That round also included Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures and Wintermute Ventures.
With the new funding, Velocity plans to expand its platform and continue connecting issuers, acquirers, payment providers, financial institutions and merchants. The company is aiming to make stablecoins easier to use within the systems businesses already depend on, rather than making them change how their entire financial operations work.
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