XRP Participates in Velocity's $38 Million Series A Investment

Ripple has participated in a $38 million (approximately 513 billion KRW) Series A investment in Velocity, an enterprise-grade stablecoin payment infrastructure startup. This brings Velocity's total raised capital to approximately $48 million (648 billion KRW). Velocity announced that the funding round was co-led by Dragonfly and FirstMark, with participation from Activen Capital, Capital One Ventures, QED Investors, Coinbase Ventures, Wintermute Ventures, and Ripple.

The funds will be allocated toward expanding Velocity's enterprise stablecoin payment and capital management infrastructure. Velocity develops a platform that connects traditional banking networks with blockchain networks, enabling enterprises and payment providers to hold, move, and pay using stablecoins. Its target markets include global merchants, payment processors, fintech companies, and financial institutions.

QED Investors explained on July 21 that existing payment systems require businesses and financial institutions to pre-fund significant amounts, causing delays and liquidity risks. QED noted Velocity's approach of leveraging existing card networks rather than competing directly with them.

Ripple's individual investment amount was not disclosed. U.Today reported Ripple participated in an additional $10 million funding round, valuing Velocity at $200 million (approximately 269.8 billion KRW), though Velocity confirmed the Series A size as $38 million without disclosing valuation. Fortune also noted that the company did not publicly disclose its valuation during recent investment rounds.

Velocity is expanding its payment infrastructure through integration with existing card networks, including a Visa Direct pilot announced on September 9 with MVB Financial. The pilot applies stablecoin-based funding and payments to eligible 'push-to-card' transactions via Visa Direct, connecting stablecoins to the traditional payment processing stage rather than directly using stablecoins for consumer services.

Velocity claims its platform supports digital asset conversion, wallet connections, and on-chain control through a single API and regulated wallet infrastructure. The company aims to connect payment and settlement processes between banking and blockchain networks.

Ripple is also expanding its investment in enterprise payment and capital management infrastructure alongside launching its stablecoin Ripple USD (RLUSD). This aligns with Ripple's previous investments in two fintech companies focused on institutional tokenization infrastructure. Stablecoin payment infrastructure serves to connect assets held on exchanges or wallets into corporate payment and capital management flows.

However, for this structure to scale into actual transaction volumes, customer acquisition, service availability regions, and regulatory requirements must be confirmed. Velocity has not disclosed specific customers or processed transaction volumes, nor have Ripple's exact investment amount or prior investments been publicly detailed.