VelaFi Secures $20 Million to Expand Stablecoin Payments in Latin America

VelaFi, a Stablecoin Platform, Secures $20 Million

The company VelaFi, part of Galactic Holdings, has secured $20 million in a Series B funding round aimed at expanding its payment and transaction settlement services in Latin America, the United States, and Asia. The round was led by XVC and Ikuyo, bringing the total funds raised by the company to over $40 million.

Founded in 2020, VelaFi provides a payment infrastructure that connects local banking systems, global transfer networks, and stablecoin protocols. Services offered include fiat gateways, cross-border payments, currency exchange flows, and treasury operations in multiple currencies.

The company announced that the new funds will be utilized for geographical expansion and licensing efforts, as well as to further develop its payment and transaction settlement infrastructure for cross-border businesses.

After starting its operations in Latin America, VelaFi has expanded into the United States and Asia, recently entering the Japanese market and announcing itself as a co-organizer of the Stablecoin Solutions Association, an initiative aimed at modernizing trade finance infrastructure in Japan.

Adoption of Stablecoins in Latin America

While VelaFi focuses on stablecoin payments for businesses, the usage of stablecoins has also surged among consumers in Latin America, driven by persistent inflation and the region's dependence on remittances. A Chainalysis report indicates that purchases of stablecoins accounted for more than half of all purchases on exchanges involving the Colombian peso, Argentine peso, and Brazilian real between July 2024 and the end of June 2025.

The President of Brazil's Central Bank, Gabriel Galipolo, stated in February 2025 that stablecoins dominate the internal crypto activity, estimating that around 90% of crypto transactions are linked to dollar-pegged tokens. Additionally, institutional interest in the region continues to grow, with Tether, the issuer of the largest stablecoin, recently investing in Parfin, a company based in London and Rio de Janeiro, to expand the role of USDt (USDT) in Latin America's institutional digital asset market.

However, despite the increasing adoption of stablecoins in the region, some central banks have expressed concerns. The Bank of Mexico recently noted that stablecoins could pose risks to financial stability, highlighting their rapid growth and the increasingly close ties to the traditional financial system.