Stablecoin payment infrastructure VelaFi raises $40 million, Alibaba supports new cross-border payment track

2026-01-12 13:04:56

Stablecoin infrastructure provider VelaFi announces completion of a $20 million Series B funding, bringing the company’s total funding to $40 million. The financing was led by XVC and Ikuyo, with participation from Planetree, BAI Capital, and Alibaba Investment under Alibaba Group. Against the backdrop of continuous growth in global cross-border payment demand, this funding reflects sustained investor confidence in the stablecoin infrastructure sector.

VelaFi’s Business Positioning and Market Opportunities

Connecting three key layers of infrastructure

Founded in 2020, VelaFi initially built payment infrastructure in Latin America and has since expanded to the US and Asia. Its core value lies in creating a unique middle layer: connecting local banking systems, cross-border payment networks, and mainstream stablecoin protocols. This enables enterprises to transfer funds across markets more quickly and at lower costs via the VelaFi platform, without relying on the inefficiencies of traditional financial systems.

Why this sector is important

Traditional cross-border payments face three major pain points: slow speed (potentially taking days), high costs (fees and exchange losses), and fragmented liquidity. VelaFi leverages stablecoins as a bridge asset, allowing transactions to be completed within minutes while significantly reducing costs. For companies that require frequent cross-border transfers, this efficiency improvement is substantial.

Signals from the investor lineup

Investor	Role	Significance
XVC, Ikuyo	Lead investors in Series B	Indicates recognition from top-tier investment institutions
Alibaba Investment	Participating investor	Strategic layout by a major internet group for stablecoin payments
Planetree, BAI Capital	Participating investors	Ongoing support from professional crypto investment firms

Alibaba’s participation is particularly noteworthy. As one of the world’s largest e-commerce platforms, Alibaba’s investment in cross-border payment infrastructure reflects a recognition of actual demand for stablecoin applications among traditional internet giants. This is not just a financial investment but a strategic move.

Implications of the funding trajectory

Since its founding, VelaFi has accumulated $40 million in total funding, with $20 million raised in Series B, indicating growing investor confidence in its growth potential. The funds are expected to be used for expanding the team, enhancing product features, and broadening market coverage.

Future focus areas

VelaFi’s success will depend on several key factors: first, its ability to remain flexible amid regulatory changes; second, its capacity to secure large-scale enterprise clients; third, maintaining technological and cost advantages over competitors. From the funding lineup, the company has already gained sufficient capital and strategic support. The next focus is on commercial implementation.

Summary

VelaFi’s Series B financing reflects the maturing trend of the stablecoin infrastructure sector. From niche crypto tools, stablecoins are evolving into a key hub connecting traditional finance and blockchain. As an infrastructure provider at this layer, VelaFi has gained support from multiple institutions including Alibaba, indicating mainstream capital and corporate recognition. The upcoming focus is on how this funding translates into tangible business results.

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