Dragonfly and FirstMark lead $38M Series A for stablecoin startup Velocity

Velocity has raised $38 million in a Series A funding round led by Dragonfly and FirstMark to expand its stablecoin powered treasury and settlement platform.

Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures and Ripple also participated in the round. The financing brings Velocity’s total capital raised to nearly $50 million since May 2025.

Founded in 2025, Velocity provides stablecoin infrastructure for merchants, payment providers, fintech companies and financial institutions. Its platform allows businesses to hold, move and settle funds while connecting stablecoins with traditional banking systems.

The platform combines local banking rails with compliance, custody, liquidity management and settlement tools. Velocity said the system is designed to help treasury teams reduce settlement times, avoid prefunding requirements and move capital across borders without replacing their existing financial operations.

Velocity currently operates in the United States, parts of Europe and Australia. The company plans to use the funding to expand its global banking and payments network, strengthen its regulatory capabilities and develop new products for enterprise customers.

The startup is also seeking licenses that would support expansion into Africa and Latin America. Additional investment will go toward custody infrastructure and products that allow businesses to earn yield on stablecoin balances.

Velocity founder and CEO Eric Queathem previously spent nine years at payments company Worldpay, where he worked on corporate strategy, acquisitions, crypto and global payouts.

Queathem said Velocity is targeting chief financial officers and treasury teams rather than limiting its products to crypto native businesses.

“Stablecoins are moving beyond payments and becoming core infrastructure for how businesses manage and move money globally,” Queathem said.

The company raised a $10 million pre seed round led by Activant Capital when it emerged from stealth in May 2025.