Velasco was built as the lead ship of a new class of iron-hulled unprotected cruisers[1] designed for colonial service in the Spanish Empire.

[1] In 1880, the Spanish government signed a contract for the construction of Velasco with the Thames Ironworks & Shipbuilding & Engineering Co. Ltd. of Leamouth, London, in the United Kingdom.

[1] Spain considered the islands to be a part of the Spanish East Indies but had not actually occupied them, and Velasco′s cruise was intended to gather information to support an intended colonization of the islands as well as Spanish plans to establish two naval divisions there, based on Ponape in the Eastern Carolines and Yap in the Western Carolines.

[1] Velasco and the unprotected cruiser Don Antonio de Ulloa arrived at Ponape from Manila three months later, transporting a Spanish Army landing force of 500 soldiers and two field guns.

[1] In 1891 Velasco conducted a patrol along the northern coast of Luzon and the neighboring Babuyan Islands to investigate and guard against activities of Japanese merchant ships the Spaniards viewed as suspicious.

At the time, Velasco was anchored in Manila Bay off the Cavite Peninsula as part of Rear Admiral Patricio Montojo y Pasaron's Pacific Squadron.

Her boilers were ashore under repair, and all of her guns were removed and installed in the artillery battery on Caballo Island at the entrance to Manila Bay.

[4] At anchor off Cavite throughout the battle[5] and lacking her guns, Velasco was unable to move or fire at the American ships and was sunk.