Velocity, a stablecoin treasury and settlement platform, has raised $38 million in a Series A funding round led by Dragonfly and FirstMark, with participation from Activant Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures and Ripple.

The startup, founded in 2025, has now raised nearly $50 million since May, according to an announcement on Tuesday.

Velocity is among a number of companies looking to enable enterprises, payment providers, and financial institutions to hold, move, and settle funds using stablecoins while connecting to traditional banking rails and compliance systems.

“We first met Velocity over a year ago, and it was clear from the beginning they have a uniquely deep understanding of the global payments stack and how it can be disrupted,” Dragonfly General Partner Rob Hadick said. “What sets them apart is their ability to connect traditional payments and banking infrastructure with stablecoin networks and unlock significant value.”

Hadick also noted Velocity is “reimagining how critical payments and commerce are executed.”

According to the announcement, Velocity’s tech is designed to shorten settlement times, remove prefunding requirements and improve efficiency for cross-border capital movement without requiring companies to overhaul existing treasury operations.

Its treasury management platform also advertises a way to earn yield on corporate funds and unify fiat and stablecoin balances, among other use cases. And its settlement features can “orchestrate clearing across banks, card networks, processors, and digital asset rails” while reducing FX friction, according to Velocity’s website.

“The most enduring technology companies are built around shifts that fundamentally change how industries operate,” said Adam Nelson, Partner at FirstMark. “We believe stablecoins have the potential to transform the movement of money as profoundly as the internet transformed the movement of information.”

Velocity emerged from stealth mode last year with a $10 million pre-seed funding round led by Activant Capital.

The new capital will be used to expand the company’s global banking and payments network, accelerate product development and deepen regulatory capabilities to meet rising demand from enterprises and financial institutions, according to the announcement.

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