Velocity Secures $48M in Series A Funding, Valued at $200M

Velocity, a startup specializing in stablecoin payments, has successfully raised an additional $10 million in its Series A funding round, bringing the total funding to $48 million. The company is now valued at $200 million, as confirmed by CEO Eric Queathem.

The funding was supported by major investors including Visa Ventures, Circle Ventures, and Ripple, reflecting a growing interest from financial institutions in blockchain technology for payment systems. Other contributors to this round include Haun Ventures, Translink Capital, and Mirana Ventures, following an initial $38 million raised in July.

With stablecoins now circulating over $300 billion, Velocity aims to enhance payment infrastructure for these digital currencies, allowing banks and payment providers to utilize them without overhauling existing systems. Queathem emphasized that while consumer payment solutions have evolved, the backend processes for transferring funds remain inefficient.

Visa's investment highlights the company's vision of integrating stablecoins as a complementary solution rather than a replacement for traditional card payments. Rubail Birwadker from Visa noted that stablecoins are crucial in modernizing value transfer within their network.

Velocity's Chief Growth Officer, Matt Larson, pointed out that consumers may not notice these changes directly, but the underlying funding and settlement processes are likely to shift towards stablecoins. Queathem predicts that within five years, many global businesses will hold some of their funds on-chain, which will require new reconciliation and treasury management systems to connect blockchain assets with traditional finance.