Velocity Funding Secures $10M Boost Amid Growing Stablecoin Interest

London-based Velocity Funding has secured an additional $10 million in funding from investors including Visa Ventures, Circle Ventures, and Ripple. This brings its total Series A funding to $48 million, valuing the company at $200 million.

The funding follows a previous $38 million round announced in July 2022. CEO Eric Queathem stated that the original round was oversubscribed.

Velocity is building infrastructure that enables banks and payment companies to use stablecoins without replacing their existing financial systems. This approach focuses on improving settlement, liquidity, and corporate treasury operations using stablecoins rather than consumer-facing payments.

The company's pitch resonates with Visa, which has invested in stablecoin development as they become increasingly important behind the scenes of global payments. Rubail Birwadker, VISA Global Head of Growth Products and Strategic Partnerships, noted that stablecoins are 'playing an increasingly important role in reshaping how value moves across the Visa ecosystem.'

Velocity expects stablecoins to operate largely behind the scenes rather than requiring consumers to hold stablecoin wallets. The company's long-term vision extends to corporate treasury management as companies begin holding more value on blockchain networks.