Ripple Joins Velocity, Targets Payment Back End With $10 Million Extension
London-based Velocity has raised a further $10 million, extending its Series A to $48 million at a $200 million post-money valuation, with participation from Visa Ventures, Circle Ventures, and Ripple. The recent capital will fund infrastructure connecting stablecoins to present fee networks, settlement methods, and company treasury operations.
The extension follows a $38 million Series A introduced in July, which CEO Eric Queathem stated was oversubscribed. Haun Ventures, Translink Capital, and Mirana Ventures additionally joined the extension spherical, pushing the entire investor checklist nicely past typical crypto-native enterprise backers into strategic company cash from a card community and a stablecoin issuer straight.
Velocity’s platform lets fee firms and banks use stablecoins for settlement, liquidity, and treasury operations with out ripping out the methods they already run. That’s a deliberate scope: the corporate is focusing on the layer connecting issuers, card networks, acquirers, and retailers, not the pockets shoppers see.
Stablecoin circulation has grown previous $300 billion, with utilization increasing from crypto-exchange greenback transfers into funds, cross-border transfers, and company treasury work, the precise seam Velocity is making an attempt to occupy.
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The Back-End Layer Nobody Fixed
Queathem’s framing attracts straight on his time at Worldpay, which settles greater than $2 trillion in annual fee quantity. His analysis: shopper funds bought quicker and slicker over the previous decade and a half, however the equipment behind them didn’t.
“All this capital has flowed into funds over the past 15 years, and it’s been 100% targeted on how do you create a greater expertise on the entrance finish for shoppers,” Queathem stated. “But nobody has fastened the back-end layer.”
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Why Ripple Participates?
Visa’s verify is notable exactly as a result of Velocity isn’t pitching stablecoins as a card substitute. The firm expects blockchain-based cash to sit down beneath present fee rails, absorbing extra of the funding and settlement work that occurs invisibly to finish customers.
Visa’s Rubail Birwadker, international head of development merchandise and strategic partnerships, stated stablecoins are taking part in an more and more vital position in reshaping how worth strikes throughout the Visa ecosystem, a press release that reads much less like hedging and extra like a community making an attempt to personal the migration relatively than get disrupted by it.
Velocity Chief Growth Officer Matt Larson made the consumer-invisibility level specific: it most likely doesn’t result in everybody switching to stablecoin wallets. Instead, he expects the funding and settlement flowing round card networks to more and more shift towards stablecoin rails whereas the front-end expertise stays unchanged.
Queathem’s longer guess is extra aggressive; he expects each international enterprise to carry some worth onchain inside 5 years, which might create sustained demand for reconciliation and treasury instruments bridging blockchain property with legacy monetary methods.
That’s a projection, not a confirmed development, and it’s price treating it as one. But the investor checklist right here isn’t speculative cash chasing a story. It’s a card community and a stablecoin issuer placing capital behind the precise thesis that treasury and settlement infrastructure, not retail wallets, is the place stablecoin adoption compounds first.
Ripple participation suits a broader sample of the corporate pushing RLUSD and associated infrastructure into institutional credit and treasury products relatively than retail-facing crypto rails, reinforcing the identical back-end thesis Velocity is promoting to its financial institution and payments-company shoppers.
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