Velocity has secured Series A funding.
The company has officially announced it has raised $38M in a Series A round to grow the adoption of global stablecoin infrastructure among enterprises, specifically targeting treasury solutions.
Those involved in the round include stablecoin and industry VCs such as FirstMark, Dragonfly, Coinbase Ventures, Capital One Ventures, Ripple, and QED Investors.
Treasury As The Holy Grail For Enterprise Stablecoin Adoption
For most corporate use-cases, stablecoins really target 2 big areas: payments (transfers, payouts, and payroll) and global treasury management (funding and FX).
While the former is what is growing the majority of adjusted stablecoin transactions onchain to-date, the latter is what many of other stablecoin companies are focusing on in what is quickly becoming a pretty crowded and competitive space.
This is because integrating stablecoin flows in treasury works really well for very large businesses that have a global presence. Traditionally, these are restricted by time of settlement.
Instead of having to constantly keep an eye on prefunding and effectively leaving operating capital on the table in order to meet jurisdictional requirements, stablecoins are able to move fast 24/7 and give a more lucrative return on corporate cash balances via stablecoin earn products.
Some of Velocity’s other stablecoin solutions include stablecoin custody, FX, compliance, and settlement piping across international and national payment rails.
