VelaFi raises $20M to expand stablecoin settlement services

Stablecoin infrastructure firm VelaFi has raised $20 million in a Series B funding round to scale its cross-border payment and settlement services.

The round was led by XVC and Ikuyo, bringing the company’s total funding to more than $40 million.

VelaFi said the capital will support expansion across Latin America, the United States and Asia.

Founded in 2020, the company provides enterprise payments infrastructure linking banks, global transfer networks and stablecoin protocols.

Its services include fiat on- and off-ramps, cross-border payments, foreign exchange workflows and multi-currency treasury operations.

VelaFi said the funding will also be used for licensing efforts and further development of its settlement rails.

The company built its early operations in Latin America before expanding into the United States and Asian markets.

In October, VelaFi entered Japan and announced its role as a co-organiser of the Stablecoin Settlement Association.

Stablecoin usage has surged across Latin America, driven by high inflation and strong demand for remittance services.

Central banks in the region have warned that rapid stablecoin growth could pose financial stability risks.