VelaFi, a stablecoin-based monetary infrastructure firm underneath Galactic Holdings, has raised $20 million in a Collection B spherical to help the growth of its enterprise funds and settlement companies throughout Latin America, the USA and Asia.
In keeping with Monday’s announcement, the spherical was led by XVC and Ikuyo, and brings the corporate’s complete funding to greater than $40 million.
Based in 2020, VelaFi supplies funds infrastructure that connects native banking methods, international switch networks and stablecoin protocols. Its companies embody fiat on- and off-ramps, cross-border funds, overseas change workflows and multi-currency treasury operations, that are provided by way of its platform and by way of APIs.
The corporate stated the brand new funding will probably be used to help geographic growth and licensing efforts, in addition to to additional develop its funds and settlement infrastructure for cross-border enterprise use.
Based in 2020, VelaFi constructed its early operations in Latin America earlier than increasing into the USA and Asia.
In October, the corporate entered the Japanese market and introduced it can take part as a co-organizer of the Stablecoin Settlement Affiliation, an initiative geared toward modernizing the nation’s commerce finance infrastructure.
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Inflation and remittances drive stablecoin adoption in Latin America
Whereas VelaFi focuses on enterprise stablecoin funds, retail use of stablecoins has additionally expanded throughout Latin America, pushed by persistent inflation and the area’s reliance on remittances.
In keeping with a Chainalysis report, stablecoin purchases accounted for greater than half of all change purchases involving the Colombian peso, Argentine peso and Brazilian actual from July 2024 to the top of June 2025.
Central Financial institution of Brazil President Gabriel Galipolo stated in February 2025 that stablecoins dominate home crypto exercise, estimating that roughly 90% of crypto transactions are tied to dollar-pegged tokens.
On the identical time, institutional curiosity within the area has continued to construct. In November, Tether, the issuer of the biggest stablecoin by market capitalization, invested in Parfin, a London- and Rio de Janeiro–primarily based firm, in a transfer to increase USDt’s (USDT) function in Latin America’s institutional digital asset market.
Regardless of rising stablecoin adoption throughout the area, some central banks have voiced warning. Mexico’s central financial institution not too long ago stated that stablecoins may pose dangers to monetary stability, pointing to their fast development, rising hyperlinks to the standard monetary system and regulatory gaps that might allow arbitrage and amplify market stress.
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