London fintech Velocity raises $38M for stablecoin settlements
A London-based startup has raised $38 million to build stablecoin payment rails for businesses, signaling venture capital confidence in crypto-based settlement as European regulators finalise clear industry rules.
Velocity, a London-based fintech, has closed a $38 million Series A round to build treasury and settlement infrastructure powered by stablecoins. The funding, led by Dragonfly and FirstMark, brings the two-year-old company’s total capital to nearly $50 million. The investor group also included Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures, and Ripple, though founder and chief executive Eric Queathem declined to disclose the valuation.
The company provides a platform for finance teams to hold and move dollar-pegged tokens, connecting this crypto infrastructure to local banking rails, custody, and compliance systems. Velocity argues this allows companies to achieve faster cross-border settlements without completely replacing their existing treasury operations. Its client base spans global merchants, payment providers, and financial institutions, though the company has kept their identities private.
Velocity is positioning itself against traditional banks and foreign-exchange houses rather than other fintech startups. Queathem, who spent nine years at WorldPay before founding Velocity in 2025, noted that while consumer payments appear seamless, the underlying cross-border infrastructure remains “awful.” By tapping stablecoins, Velocity is betting that businesses will bypass legacy foreign-exchange networks to cut costs and settlement times.
European regulation shapes the race
The raise arrives as stablecoins transition from a niche crypto asset to mainstream financial plumbing. Venture investors have deployed hundreds of millions of dollars into the sector, but the market is becoming fiercely competitive. In June, a consortium featuring Stripe, Visa, and BlackRock launched Open USD to challenge existing stablecoin leaders, while other startups like Flex chase the same enterprise clients.
For European firms, the timing of this investment aligns with increasing regulatory clarity. The Bank of England is actively determining how strictly to oversee stablecoin issuers, while the EU is already licensing crypto firms under its comprehensive MiCA framework. This established regulatory environment is drawing even traditionally conservative banks into offering crypto services.
Velocity currently operates in the United States, parts of Europe, and Australia. With the new capital, the company intends to secure licences in Africa and Latin America, expand its custody capabilities, and introduce yield-generating stablecoin products. “The timing and technology are right for us to bring these features to market,” Queathem said.
