VelaFi, a stablecoin-focused financial infrastructure company, has secured $20 million in a Series B funding round to accelerate its expansion across the Americas and Asia. The round was led by venture capital firms XVC and Ikuyo, with participation from Alibaba Investment, Planetree, and BAI Capital. This investment brings VelaFi's total funding to over $40 million.
The company, operating under Galactic Holdings, plans to use the capital to strengthen its licensing, technology development, and regional partnerships. VelaFi's core platform connects traditional banking rails, global payment networks, and major stablecoin protocols to facilitate efficient cross-border payments and settlements for enterprise clients. Its services include fiat on- and off-ramps, multi-currency accounts, foreign exchange tools, and treasury operations, offered both through a direct interface and APIs.
VelaFi has processed billions of dollars in transaction volume for hundreds of enterprise clients. The company initially built its operations in Latin America to address slow settlement speeds and high costs before expanding into the United States and, more recently, Asia. In October, VelaFi entered the Japanese market and will co-organize the Stablecoin Settlement Association, an initiative aimed at modernizing Japan's trade finance infrastructure.
The funding underscores the growing enterprise demand for stablecoin-based settlement systems. Industry estimates suggest stablecoins now facilitate between $25 trillion and $30 trillion in annual settlement volume, highlighting their increasing role in the global payment infrastructure, which sees over $150 trillion in annual flows. The news comes amid significant stablecoin adoption in Latin America, driven by inflation and remittances, where stablecoins account for a majority of crypto purchases in countries like Colombia, Argentina, and Brazil.
