Stablecoin Platform VelaFi Secures $20M to Scale Cross-Border Settlement Services

VelaFi, a stablecoin-based financial infrastructure company under Galactic Holdings, has raised $20 million in a Series B round to support its expansion of cross-border payments and settlement services. The funding brings the company's total capital to over $40 million. XVC and Ikuyo led the round, with additional participation from Alibaba Investment, Planetree, and other global investors.

The company provides payment infrastructure that connects local banking systems, global transfer networks, and stablecoin protocols. Its services include fiat on- and off-ramps, cross-border payments, and multi-currency treasury operations.

The company has expanded from Latin America to the U.S. and Asia, with plans to further develop its infrastructure to serve global enterprises. In October, it entered the Japanese market and will co-organize the Stablecoin Settlement Association.

Why Did the Funding Happen?

The funding reflects growing demand for stablecoin-based payment solutions in Latin America and beyond. Chainalysis reported that stablecoin purchases accounted for over half of all exchange purchases involving the Colombian peso, Argentine peso, and Brazilian real from July 2024 to June 2025.

Central banks in the region have also noted the rising dominance of stablecoins. Brazil's central bank said in February 2025 that stablecoins make up 90% of crypto transactions in the country.

How Will the Funds Be Used?

VelaFi will use the $20 million to expand into new markets and acquire necessary licenses in the U.S. and Asia. The capital will also support the development of its cross-border settlement infrastructure for businesses.

The company plans to strengthen its licensing footprint and deepen connectivity in key economic corridors. This includes supporting global trade flows and capital movements, particularly in regions with complex and underserved financial systems.

What Are Analysts Watching Next?

Industry analysts are tracking VelaFi's ability to secure regulatory licenses in major markets. Successful licensing in the U.S. or Asia could help the company gain institutional trust and increase adoption.

Analysts are also monitoring VelaFi's expansion into Japan and its role in the Stablecoin Settlement Association. The company's participation in this initiative could influence how stablecoins are used in trade finance.

In addition, investors are watching for any regulatory challenges in Latin America. Some central banks, including Mexico's, have expressed concerns over the risks stablecoins could pose to financial stability.