London-based payments startup Velocity announced a $38 million Series A funding round on Tuesday to help businesses integrate stablecoins into their payment systems. Founded in 2025, Velocity targets companies unfamiliar with using dollar-pegged tokens to speed up transactions. The round was led by venture capital firms Dragonfly and Firstmark, with participation from Coinbase, Capital One Ventures, and Wintermute, according to fortune.com.
Velocity’s founder and CEO, Eric Queathem, highlighted the challenges businesses face using traditional banking rails for cross-border payments, drawing on his nine years at WorldPay. Dragonfly general partner Rob Hadick said the firm focuses on backing companies that facilitate fiat-to-bridge transactions, aiming to reach businesses unaware they can use stablecoins to solve payment issues. Velocity’s customers include global merchants, payment providers, fintechs, and financial institutions, though the company did not disclose specific client names.
The funding round reflects the growing global adoption of stablecoins as companies seek faster and more efficient payment methods. Velocity’s approach aligns with a broader trend of traditional finance adapting to digital currencies, especially dollar-pegged tokens. The involvement of major investors like Coinbase and Capital One Ventures signals confidence in the stablecoin payments sector, which is expanding rapidly amid increasing demand for cross-border payment solutions.
Velocity plans to use the $38 million to accelerate product development and expand its client base across global markets. The company’s Series A round, announced in July 2026, positions it to capitalize on the stablecoin industry’s growth and help more businesses transition to faster, blockchain-based payment systems.