VelaFi, a leading stablecoin-based financial infrastructure provider under the Galactic Holdings umbrella, has successfully closed a $20 million Series B funding round. The investment was led by prominent venture firms XVC and Ikuyo, bringing the company’s total funding to date to over $40 million. This capital injection marks a significant milestone for VelaFi as it seeks to revolutionize the way enterprises handle cross-border settlements and international payments using blockchain technology.
Founded in 2020, VelaFi has positioned itself at the intersection of traditional finance and the emerging digital asset economy. Its core mission is to bridge the gap between local banking systems, global transfer networks, and decentralized stablecoin protocols. By leveraging the speed and transparency of stablecoins, VelaFi offers a streamlined alternative to the legacy SWIFT system, which is often criticized for its high fees, slow processing times, and lack of transparency.
The newly acquired funds are earmarked for several strategic initiatives. Primarily, VelaFi plans to accelerate its geographic expansion, with a particular focus on deepening its presence in Latin America, the United States, and Asia. In Latin America, the demand for stablecoin-based solutions is surging due to high inflation rates and a heavy reliance on remittances. Data suggests that in countries like Argentina and Brazil, stablecoin purchases often account for more than half of all exchange volume, highlighting their role as a "digital dollar" for both retail and corporate users.
Beyond expansion, VelaFi is investing heavily in licensing and regulatory compliance. As the global regulatory landscape for digital assets matures, having the necessary licenses to operate as a regulated financial entity is crucial for enterprise adoption. The company’s service suite includes comprehensive fiat on- and off-ramps, sophisticated foreign exchange (FX) workflows, and multi-currency treasury operations accessible via a robust platform and developer-friendly APIs.
Furthermore, VelaFi is making strategic moves in the Asian market, particularly in Japan. The company recently announced its role as a co-organizer of the Stablecoin Settlement Association, an initiative designed to modernize Japan’s trade finance infrastructure. By collaborating with local institutions, VelaFi aims to set new standards for how stablecoins can be used to settle large-scale commercial transactions efficiently and securely on a global scale.
Posted Using INLEO