VelaFi, a company focused on stablecoin-based financial solutions under Galactic Holdings, has secured $20 million in a Series B funding round aimed at accelerating its enterprise payment and settlement services across Latin America, the US, and Asia.
According to a recent announcement, the investment was led by XVC and Ikuyo, raising the company’s total funding to over $40 million.
Established in 2020, VelaFi connects local banking networks with global transfer systems and stablecoin protocols, offering services such as fiat gateways, cross-border transactions, foreign exchange processes, and multi-currency treasury management through its platform and APIs.
The additional capital will facilitate geographic expansion and further the development of its payment and settlement technology for international business transactions. VelaFi initially expanded within Latin America before venturing into the United States and Asia.
In October, the firm entered the Japanese market and will act as co-organizer of the Stablecoin Settlement Association, which aims to modernize Japan’s trade finance framework.
Inflation and Remittances Boost Stablecoin Popularity in Latin America
While VelaFi concentrates on enterprise-level stablecoin solutions, the use of stablecoins among consumers has also surged in Latin America, driven by ongoing inflation and significant reliance on remittances.
According to a Chainalysis report, stablecoin transactions represented over half of all exchange trades involving the Colombian peso, Argentine peso, and Brazilian real from mid-2024 to late June 2025.
Gabriel Galipolo, President of Brazil’s Central Bank, mentioned in February 2025 that stablecoins largely govern the domestic cryptocurrency landscape, estimating that approximately 90% of digital transactions involve dollar-pegged tokens.
Simultaneously, institutional interest in Latin American stablecoins has been increasing. Tether, the issuer of the leading stablecoin by market cap, recently invested in Parfin, a firm based in London and Rio de Janeiro, to enhance the use of USDT in Latin America’s institutional market.
Despite the rising adoption, some central banking authorities have expressed concerns. Mexico’s central bank recently noted that stablecoins could represent risks to financial stability, given their rapid expansion and increasing connections to the conventional financial system.
