Thredd Taps Velocity to Speed Stablecoin-Powered Money Movement

Thredd is broadening its issuer processing platform to incorporate stablecoin-powered money movement functionalities, following a partnership with stablecoin treasury and settlement platform Velocity, the company announced on Wednesday (Sept. 23). Thredd CEO Jim McCarthy explained in the release, "Stablecoins are rapidly becoming an important part of global payments infrastructure, but clients should not have to rebuild their payments stack to take advantage of them."

By integrating stablecoin money movement into the Thredd platform, the company aims to connect the issuing and processing capabilities its clients already use with new methods to move, convert, and settle funds, providing clients with increased flexibility while preserving the controls, reliability, and operational support they expect from Thredd.

The initial implementation will primarily focus on supporting B2B and B2B2B applications, including stablecoin-backed card programs, cross-border payouts, global treasury flows, and on-chain settlement. Clients will then have the ability to convert between fiat currencies and supported stablecoins, send funds on-chain or through connected fiat rails, and utilize stablecoins for funding, payouts, and settlements.

Velocity contributes to this integration with programmable wallet infrastructure, blockchain/banking rails connectivity, liquidity and conversion capabilities, and orchestration for transfers and settlement. Eric Queathem, CEO and founder of Velocity, stated, "The real opportunity with stablecoins isn’t a new asset, it’s a more programmable way for businesses to move and manage money globally."

The partnership allows Thredd's clients, known for sophisticated card programs, to use stablecoin rails within an environment they are already familiar with. PYMNTS previously explored stablecoins' role as financial infrastructure in a report, emphasizing that the competitive advantage is shifting toward the layers surrounding the token: custody, credit, liquidity, settlement, FX, compliance, and developer distribution.

This shift is driven by companies like Tether, Visa, and U.S. Bank, which now view the digital dollar as an underlying component in recognizable financial services products such as card programs and cross-border treasuries.