Stablecoin Platform VelaFi Secures Transformative $20M Funding to Revolutionize Cross-Border Settlement Rails

In a significant development for global financial infrastructure, stablecoin platform VelaFi has secured $20 million in Series B funding to dramatically scale its cross-border settlement systems across three continents, marking a pivotal moment for enterprise blockchain adoption in international finance. This substantial investment arrives as traditional settlement networks face increasing pressure from both technological innovation and growing demand for efficient international transactions.

Stablecoin Platform VelaFi Announces Major Funding Milestone

VelaFi, operating under Galactic Holdings, confirmed the $20 million Series B round on Monday, bringing its total funding to over $40 million since its 2020 founding. Significantly, the investment round attracted prominent venture capital firms XVC and Ikuyo as lead investors. This funding injection specifically targets expansion of enterprise payment and settlement services across Latin America, the United States, and Asia.

The company’s infrastructure uniquely connects local banking systems with global transfer networks and stablecoin protocols. Consequently, VelaFi provides comprehensive financial services including:

• Fiat on-ramps and off-ramps for seamless currency conversion
• Cross-border payment solutions with reduced settlement times
• Foreign exchange workflows optimized for enterprise clients
• Multi-currency treasury operations through platform and API access

Strategic Expansion Across Global Markets

VelaFi initially built its operational foundation in Latin American markets before expanding strategically into the United States and Asian regions. The company recently entered the Japanese market in October, simultaneously announcing its participation as a co-organizer of the Stablecoin Settlement Association. This initiative specifically aims to modernize Japan’s trade finance infrastructure through blockchain technology.

According to company statements, the new capital will support three primary objectives:

Latin America’s Stablecoin Adoption Context

While VelaFi focuses primarily on enterprise solutions, retail stablecoin adoption across Latin America provides crucial market context. Persistent inflation and substantial remittance flows drive this adoption significantly. A Chainalysis report reveals stablecoin purchases accounted for over half of all exchange purchases involving the Colombian peso, Argentine peso, and Brazilian real from July 2024 through June 2025.

Central Bank of Brazil President Gabriel Galipolo noted in February 2025 that stablecoins dominate domestic crypto activity, estimating approximately 90% of crypto transactions involve dollar-pegged tokens. Meanwhile, institutional interest continues building across the region. Tether invested in London- and Rio de Janeiro-based Parfin in November to expand USDt’s role in Latin America’s institutional digital asset market.

Regulatory Landscape and Financial Stability Considerations

Despite accelerating adoption, regulatory approaches vary considerably across jurisdictions. Mexico’s central bank recently expressed caution about stablecoins, highlighting potential financial stability risks. Specifically, regulators pointed to rapid growth, increasing traditional financial system connections, and regulatory gaps that might enable arbitrage or amplify market stress during volatility periods.

This regulatory diversity presents both challenges and opportunities for infrastructure providers like VelaFi. Companies must navigate complex compliance requirements while demonstrating reliability and security to enterprise clients. Nevertheless, the growing institutional participation suggests increasing mainstream acceptance of stablecoin-based settlement solutions.

Comparative Analysis of Settlement Solutions

Traditional cross-border settlement systems typically require multiple intermediaries, resulting in extended processing times and higher costs. In contrast, stablecoin-based solutions can potentially settle transactions within minutes rather than days. Furthermore, these systems often provide greater transparency through blockchain record-keeping while reducing counterparty risk through programmable settlement conditions.

Enterprise adoption faces several key considerations:

• Regulatory compliance across different jurisdictions
• Integration complexity with existing financial systems
• Volatility management through proper treasury operations
• Security protocols for digital asset custody

Future Implications for Global Finance

The VelaFi funding announcement arrives during a transformative period for international settlements. Traditional correspondent banking networks face mounting pressure from technological alternatives offering superior speed and cost efficiency. Consequently, financial institutions increasingly explore blockchain-based solutions to maintain competitive advantage.

Industry analysts observe several emerging trends:

• Growing institutional demand for blockchain settlement rails
• Increasing regulatory clarity in major financial markets
• Convergence between traditional finance and digital asset infrastructure
• Expansion of real-world asset tokenization creating new settlement needs

VelaFi’s specific focus on enterprise clients positions the company advantageously within this evolving landscape. Enterprise adoption typically drives infrastructure standardization and regulatory acceptance, potentially accelerating broader market development.

Conclusion

VelaFi’s successful $20 million Series B funding round represents a significant milestone for stablecoin infrastructure development, particularly for cross-border settlement applications. The company’s strategic expansion across Latin America, the United States, and Asia reflects growing institutional recognition of blockchain technology’s potential to transform international finance. As regulatory frameworks evolve and adoption accelerates, stablecoin platforms like VelaFi will likely play increasingly important roles in global financial infrastructure, potentially reducing settlement times and costs while increasing transparency across international transactions.

FAQs

Q1: What specific services does VelaFi provide to enterprise clients?
VelaFi offers comprehensive financial infrastructure including fiat on-ramps and off-ramps, cross-border payment solutions, foreign exchange workflows, and multi-currency treasury operations through both its platform and API access.

Q2: How does stablecoin adoption in Latin America impact VelaFi’s business strategy?
High retail stablecoin adoption driven by inflation and remittances creates favorable market conditions for enterprise solutions. This adoption demonstrates market readiness and helps establish necessary financial infrastructure that VelaFi can leverage for its enterprise services.

Q3: What regulatory challenges do stablecoin platforms face in cross-border operations?
Platforms must navigate varying regulatory frameworks across jurisdictions, obtain necessary financial licenses, address financial stability concerns raised by some central banks, and ensure compliance with anti-money laundering and know-your-customer requirements.

Q4: How do stablecoin settlement systems differ from traditional cross-border payment networks?
Stablecoin systems typically offer faster settlement times (minutes versus days), potentially lower costs through reduced intermediaries, increased transparency via blockchain records, and programmable settlement conditions that can reduce counterparty risk.

Q5: What broader trends in global finance support the growth of companies like VelaFi?
Key trends include growing institutional demand for efficient settlement solutions, increasing regulatory clarity in major markets, convergence between traditional and digital finance, and expansion of real-world asset tokenization creating new settlement requirements.