Velocity Raises $38M Series A for Stablecoin Treasury and Settlement Platform, Backed by Dragonfly, FirstMark, Coinbase and Ripple
Velocity, a stablecoin treasury and settlement platform, has raised $38 million in a Series A funding round co-led by Dragonfly and FirstMark, with participation from Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures, and Ripple. The round brings the company’s total funding to roughly $50 million, all raised since it emerged from stealth last year with a $10 million pre-seed led by Activant Capital. For a startup founded only in 2025, assembling a cap table that spans crypto-native funds, a traditional bank’s venture arm, and two of the largest names in the stablecoin ecosystem is itself a signal of how quickly enterprise stablecoin infrastructure has moved from speculative bet to contested land grab.
What Velocity Actually Does
Velocity sits in the layer between corporate treasuries and the blockchain, letting enterprises hold, move, and settle funds using stablecoins while staying connected to traditional banking rails and compliance systems. The pitch is that companies get the speed of on-chain settlement without having to overhaul their existing treasury operations. According to the company, its technology shortens settlement times, removes prefunding requirements, and improves the efficiency of cross-border capital movement. Its treasury product advertises the ability to earn yield on corporate funds and unify fiat and stablecoin balances, while its settlement layer aims to orchestrate clearing across banks, card networks, processors, and digital-asset rails, reducing foreign-exchange friction in the process.
The distinction that matters here is between issuance and orchestration. Velocity is not creating a dollar-pegged token the way Circle, Tether, or Paxos do, earning revenue from reserve yield. It belongs instead to the orchestration category alongside firms like Bridge and Zero Hash, providing the routing, compliance, and settlement plumbing that lets enterprises plug into stablecoin rails without building blockchain infrastructure from scratch. That is a deliberately unglamorous position, and a defensible one, because the hardest problem in enterprise stablecoin payments is not minting a token but coordinating compliance and liquidity across the tangle of on-ramps, off-ramps, wallets, banks, and card networks that every real-world payment touches.
Why the Investors Are Circling
The backers framed the thesis in expansive terms. Dragonfly General Partner Rob Hadick, who said the firm first met Velocity over a year ago, described the team as having a uniquely deep understanding of the global payments stack and the ability to connect traditional banking infrastructure with stablecoin networks. FirstMark Partner Adam Nelson went further, arguing that stablecoins have the potential to transform the movement of money as profoundly as the internet transformed the movement of information. That is a familiar refrain in the sector, but the participation of Capital One Ventures and Ripple gives it more weight than boilerplate: a traditional bank’s venture arm and a major payments-focused crypto company both taking positions suggests the infrastructure is being evaluated by parties who would actually route volume through it.
The new capital is earmarked for expanding Velocity’s global banking and payments network, accelerating product development, and deepening its regulatory capabilities to meet what the company describes as rising demand from enterprises and financial institutions.
The Bigger Picture: A Funding Wave With a Regulatory Clock
Velocity’s raise lands in the middle of a broad acceleration in stablecoin infrastructure investment, and the timing is not coincidental. The category’s real inflection was regulatory: the GENIUS Act, signed into US law in 2025, created the first federal framework for payment stablecoins, and its implementing rules are being finalized on a rulemaking clock that runs through roughly July 2026. That clarity has pulled enterprises off the sidelines. Adjusted stablecoin transaction volumes reached into the trillions in 2025, and by various estimates around 60% of real-world stablecoin payment volume now comes from B2B transactions, exactly the use case Velocity targets. Total stablecoin supply crossed $300 billion in early 2026.
The money has followed. Stripe acquired the orchestration platform Bridge for roughly $1.1 billion, and Mastercard moved to acquire BVNK in a deal reported near $1.8 billion, both bets on stablecoin infrastructure as core payments plumbing rather than a crypto sideshow. Against that backdrop, a $38 million Series A is a comparatively early-stage entry, which is precisely the point: incumbents are buying their way into the settlement layer at billion-dollar prices, and venture investors are funding the next cohort of orchestration startups hoping to build the asset that gets acquired, or the platform that becomes indispensable before it can be.
What to Watch
The competitive question for Velocity is differentiation in an increasingly crowded field. Orchestration is a layer many well-funded players want to own, from Stripe and Mastercard through their acquisitions to issuer-neutral routing platforms and the banks themselves. Velocity’s stated advantages, connecting legacy banking infrastructure to stablecoin networks and folding compliance into the flow, are real but not unique, and the GENIUS Act’s tiered structure means the regulatory obligations it must satisfy are still crystallizing as final rules land. The more durable test is whether enterprises actually shift settlement volume onto platforms like this at scale, or whether the current wave of funding is running ahead of production adoption. For now, Velocity has the capital, the backers, and a defensible position in the part of the stack where the hard problems live. Whether that translates into the enduring infrastructure its investors are betting on will depend on execution over the next several quarters, as the regulatory framework it is building toward finally takes effect.