coindesk.com
VelaFi, a stablecoin-powered financial infrastructure provider under Galactic Holdings, has raised $20 million in a Series B funding round led by XVC and Ikuyo, the company said in a press release Monday.
The round also included participation from Alibaba Investment, Planetree, BAI Capital, and other global investors, bringing the company’s total funding to more than $40 million.
Founded in 2020, VelaFi initially built payment infrastructure in Latin America and has since expanded into the U.S. and Asia. Its platform connects local banking rails, cross-border payment networks and major stablecoin protocols, allowing enterprises to move funds across markets more quickly and at lower cost than through traditional systems.
The company offers on- and off-ramps, pay-ins and pay-outs, cross-border payments, multi-currency accounts, foreign exchange tools and asset management services, delivered through a direct platform or APIs.
Stablecoins have emerged as a key tool in global payments, offering blockchain-based digital tokens designed to maintain a stable value and settle transactions in minutes rather than days.
Once largely confined to crypto trading, they are increasingly used by enterprises for cross-border payments, treasury management and liquidity operations, particularly in regions where traditional banking rails are slow or costly.
That shift has drawn growing interest from regulators and financial institutions, positioning stablecoins as a potential bridge between legacy finance and blockchain-based settlement systems.
“We are building the next generation of global payment infrastructure, one that is instant, transparent, and regulatory-first,” said Maggie Wu, CEO and co-founder of VelaFi, in the release. “This investment accelerates our global expansion from Latin America into the United States and Asia."
Stablecoins are increasingly used for cross-border settlement, with industry estimates placing annual stablecoin transaction volumes in the tens of trillions of dollars. VelaFi is betting that demand from enterprises for faster and more interoperable payment infrastructure will continue to grow as global finance shifts away from slower, fragmented legacy rails.
The firm said it has served hundreds of enterprise clients and processed billions of dollars in transaction volume.
Read more: Tether said to have invested up to $50 million in crypto lender Ledn at $500 million valuation