VelaFi, a stablecoin-based financial infrastructure company under Galactic Holdings, has raised $20 million in a Series B round to support the expansion of its enterprise payments and settlement services across Latin America, the United States and Asia.
According to Monday’s announcement, the round was led by XVC and Ikuyo, and brings the company’s total funding to more than $40 million.
Founded in 2020, VelaFi provides payments infrastructure that connects local banking systems, global transfer networks and stablecoin protocols. Its services include fiat on- and off-ramps, cross-border payments, foreign exchange workflows and multi-currency treasury operations, which are offered through its platform and via APIs.
The company said the new funding will be used to support geographic expansion and licensing efforts, as well as to further develop its payments and settlement infrastructure for cross-border business use.
Founded in 2020, VelaFi built its early operations in Latin America before expanding into the United States and Asia.
In October, the company entered the Japanese market and announced it will participate as a co-organizer of the Stablecoin Settlement Association, an initiative aimed at modernizing the country’s trade finance infrastructure.
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Inflation and remittances drive stablecoin adoption in Latin America
While VelaFi focuses on enterprise stablecoin payments, retail use of stablecoins has also expanded across Latin America, driven by persistent inflation and the region’s reliance on remittances.
According to a Chainalysis report, stablecoin purchases accounted for more than half of all exchange purchases involving the Colombian peso, Argentine peso and Brazilian real from July 2024 to the end of June 2025.
Central Bank of Brazil President Gabriel Galipolo said in February 2025 that stablecoins dominate domestic crypto activity, estimating that roughly 90% of crypto transactions are tied to dollar-pegged tokens.
At the same time, institutional interest in the region has continued to build. In November, Tether, the issuer of the largest stablecoin by market capitalization, invested in Parfin, a London- and Rio de Janeiro–based company, in a move to expand USDt’s (USDT) role in Latin America’s institutional digital asset market.
Despite rising stablecoin adoption across the region, some central banks have voiced caution. Mexico’s central bank recently said that stablecoins could pose risks to financial stability, pointing to their rapid growth, increasing links to the traditional financial system and regulatory gaps that could enable arbitrage and amplify market stress.
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