VelaFi Raises $20M Series B to Expand Stablecoin Cross‑Border Settlement in LATAM, US and Asia
VelaFi, a Galactic Holdings-backed stablecoin payments infrastructure provider founded in 2020, closed a $20 million Series B led by XVC and Ikuyo, bringing total funding to more than $40 million. The company offers APIs and settlement rails that link local banks, global transfer networks and stablecoin protocols to provide fiat on/off ramps, cross-border corporate payments, FX workflows and multi-currency treasury services. Proceeds will fund geographic expansion across Latin America, the United States and Asia, licensing efforts and further development of enterprise settlement rails. VelaFi launched in Latin America, expanded into Japan in October and is a co-founder of a Stablecoin Settlement Association aimed at modernizing trade finance. The coverage highlights rising retail stablecoin adoption in Latin America—driven by high inflation and remittances—with Chainalysis reporting stablecoins accounted for over half of transactions denominated in Colombian peso, Argentine peso and Brazilian real between July 2024 and June 2025. Regional central banks are cautious: Brazil’s central bank governor estimates roughly 90% of domestic crypto activity involves dollar‑pegged stablecoins, and Mexico warned of financial‑stability risks from rapid stablecoin growth and regulatory gaps. Key SEO keywords: VelaFi, stablecoin, cross-border payments, Series B funding, LATAM expansion, settlement rails, USDT.
Bullish
The funding and expansion materially strengthen VelaFi’s capacity to provide enterprise-grade stablecoin settlement rails and fiat on/off ramps. For the stablecoin(s) mentioned—primarily dollar‑pegged tokens (eg. USDT)—this is bullish: improved infrastructure and deeper integration with local banks and transfer networks should increase on-chain settlement volumes and utility in key remittance and FX corridors, supporting demand for settlement stablecoins. Short-term effects may be limited: fundraising itself does not immediately change liquidity or circulating supply, and regulatory concerns in LATAM (Brazil, Mexico) could slow adoption or routing decisions. Over the medium to long term, successful rollout of licensed rails and corporate integrations in LATAM, the US and Asia could raise transaction volumes and institutional use of USDT-style stablecoins, which typically supports price stability and higher market demand for those tokens. Risks that temper the bullish view include regulatory crackdowns, competition from other settlement providers or CBDC pilots, and execution risk in scaling cross-border rails.