Alibaba Invests $20 Million in Latin American Stablecoin Infrastructure: Can VelaFi Become a New Bridge for Cross-Border Payments?

A quiet revolution in financial infrastructure is taking place in Latin America, with Chinese internet giants accelerating their deployment.

On January 12, 2026, stablecoin financial infrastructure platform VelaFi announced the completion of a $20 million Series B funding round, bringing total funding to over $40 million. Among the prestigious investors is Alibaba Investment, a subsidiary of Alibaba, signaling a highly notable market signal. This not only marks Alibaba's first deep involvement in the Latin American stablecoin space but also reveals the ambitions of global e-commerce giants for the next-generation cross-border payment system.

Alibaba’s Strategic Move: E-commerce Giant’s Stablecoin Strategy

As the world’s largest B2B and B2C trading platform, Alibaba is well aware of the pain points in cross-border payments. Under traditional cross-border payment systems, high fees (usually 2-3%), lengthy settlement cycles of several days, and exchange rate volatility risks have long constrained the globalization of small and medium-sized enterprises. VelaFi’s stablecoin infrastructure precisely addresses these issues—enabling instant settlement, costs below 0.5%, and avoiding exchange rate risks.

It is worth noting that the markets where VelaFi is deeply involved—Mexico, Brazil, and others—are key growth areas that AliExpress and Alibaba International have focused on in recent years. Data shows that cryptocurrency adoption in Latin America has reached 12.1%, with 57.7 million holders, and stablecoins account for 39% of all crypto purchases. By investing in VelaFi, Alibaba is highly likely to explore a path to optimize local payments and merchant settlement experiences in emerging markets using stablecoin technology, building a more efficient payment moat for its e-commerce platforms.

“This is not just a simple financial investment, but a strategic positioning,” said an industry analyst in cross-border payments. “While competitors still rely on the traditional SWIFT system, Alibaba is already laying out a blockchain-based real-time settlement network.”

Geopolitical Logic Behind the Luxurious Investment Lineup

This round of funding was led by XVC and Ikuyo, forming a model of East-West capital cooperation.

XVC, a Beijing-based dual-currency fund management firm, whose partner Hu Boyu has successfully invested in star projects like Kuaishou, Weee!, and BaWang Tea. XVC’s involvement not only brings local Chinese resources to VelaFi but also signals recognition from Chinese capital of the “technology going overseas + compliant infrastructure” model.

Ikuyo, a Tokyo-listed company with a deeper connection to VelaFi, had already formed a strategic partnership when VelaFi entered the Japanese market in November 2025, jointly establishing a stablecoin settlement association. This additional investment demonstrates strong confidence from traditional Japanese financial institutions in stablecoin cross-border settlement scenarios.

Meanwhile, continued follow-on investments from veteran shareholders such as Planetree (Alibaba partner company) and BAI Capital further prove the sustainability of VelaFi’s business model. This architecture—combining “Chinese capital + Japanese industry resources + Latin American markets + global compliance”—is reshaping the investment paradigm of crypto infrastructure.

Who is VelaFi? How the Chinese Team Conquered Latin America

VelaFi is not an overnight creation. As a brand under Galactic Holdings, it was founded by a Chinese founding team, with CEO Maggie Wu also being the founder of well-known venture capital firm Krypital Group. In 2025, the original enterprise-level business TruBit Business was officially rebranded as VelaFi, marking its strategic transition from a simple payment tool to a financial infrastructure platform.

Galactic Holdings’ ecosystem layout is ambitious:

• TruBit: Leading crypto wallet in Latin America

• TruBit Pro: Professional trading platform

• VelaFi: Enterprise-level cross-border payment solution

To date, VelaFi has served over 500 global enterprise clients, processed billions of dollars in payment transactions, with operations spanning Latin America, the US, Hong Kong, and Singapore. Its LinkedIn page shows active participation in the 2025 Latin American Stablecoin Conference and a strategic partnership with World Liberty Financial to strengthen global liquidity.

Core Model: Embedding Stablecoins into the Real Economy

VelaFi’s business model rests on three pillars:

1. Compliance First

All enterprise clients must pass strict KYC/KYB verification, setting a benchmark in the “compliance anxiety” crypto industry. The company is actively applying for licenses in the US and Asia to build a “compliance moat” for competitive advantage.

2. Free Conversion Between Fiat and Stablecoins

Deposit side: end users pay with local fiat currency, enterprises receive stablecoins like USDT/USDC.

Withdrawal side: enterprises send stablecoins, and VelaFi transfers fiat into user accounts via local banking networks.

3. An "Accelerator" for Traditional Payment Tracks

This is VelaFi’s most innovative aspect—deep integration with mainstream instant payment systems like Mexico’s SPEI, Brazil’s PIX, and Colombia’s PSE, linking stablecoin liquidity with existing banking rails. For example, a Mexican company pays in pesos, a Brazilian supplier receives reais directly, and the stablecoin circulates instantly without both parties needing to handle cryptocurrencies.

This model allows crypto assets to no longer float on-chain but to be truly embedded in cross-border e-commerce, labor outsourcing, and international trade scenarios. As Maggie Wu stated at the stablecoin conference: “Stablecoins are no longer promises but reality. The question is not whether enterprises will adopt, but when.”

Latin America: The Best Testing Ground for Crypto Payments

Why has Latin America become a fertile ground for stablecoins? Three main drivers:

• Inflation Hedge: Argentine pesos, Venezuelan bolivars, and other currencies have depreciated sharply, making stablecoins a store of value.

• Payment Efficiency: Cross-border remittance costs are among the highest globally; stablecoins reduce fees by over 90%.

• Capital Control Evasion: Under strict foreign exchange controls, stablecoins provide a legal channel for value transfer.

In 2024-2025, the Latin American crypto gateway market grew by 35% year-over-year, with Brazil and Argentina leading global adoption rates. While traditional financial institutions are still observing, infrastructure providers like VelaFi have already built an “underground railway.”

Competitive Landscape and Challenges

VelaFi faces not only opportunities but also challenges. Globally, Circle (issuer of USDC) has raised over $400 million, Fireblocks has built an institutional custody network, and traditional payment giants like Stripe now support USDC payments. But in the fragmented Latin American market, deep integration with local payment systems and “heavy models” may instead become barriers.

Challenges are also evident:

• Regulatory Uncertainty: Different countries have varying attitudes toward stablecoins, with policy risks.

• Banking Relationships: Dependence on local banking networks requires ongoing relationship management.

• Technical Risks: Cross-chain liquidity management and anti-money laundering technology require significant investment.

When Chinese speed meets Latin American demand

The rise of VelaFi reveals a profound trend: the competition for crypto infrastructure is no longer exclusive to tech geeks but involves a triangle of traditional giants, Chinese entrepreneurs, and emerging market needs. Alibaba’s investment is not just about financial returns but also a strategic defense of its e-commerce ecosystem; the execution power of Chinese teams makes complex compliance and technical implementation possible; and the genuine needs of Latin American markets provide the most fertile soil for all this.

The $20 million Series B funding is just the beginning. When stablecoin payments shift from “optional” to “essential,” can VelaFi become the “Western Union” connecting fiat and crypto worlds? Only time will tell.

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