Price volatility in cryptocurrencies discourages end-consumers and businesses from adopting cryptocurrencies. It is predicted that the emergence of stable coins will solve this problem and bring cryptocurrencies to mainstream adoption. However, the current stable coins are still lacking both necessary features and ecosystem.
Velo is a next-generation financial protocol that facilitates the open and trust less credit network for businesses by enabling stable credit or stable credit issuance on a distributed ledger. Unlike existing solutions, the stable credits issued by the Velo Protocol can be pegged to any customized unit value, allowing businesses to leverage their existing infrastructure, branding and user base. The Protocol ensures the stability of the digital credit through the Digital Reserve System (DRS), which is a crypto-collateral base. Hence, the use cases for the Velo Protocol are immense, for instance, cross-border remittance, lending, payment, loyalty point programs, with a combined market size exceeding trillions of dollars.
To ensure the utilization of Velo protocol, Velo will commence with strong trusted partners and interoperability of existing centralised systems. Velo protocol will be used by cross-border remittance businesses in South East Asia that includes a vast network of agents that offer last-mile settlement reaching out even to the underbanked communities located in rural areas. According to the World Bank, South East Asia already has remittance volumes of USD 150 billion annually and is considered a high-growth region where millions of people in the past have had to deal with informal, costly, unsafe, and fragmented financial infrastructure. Not only Velo will empower users with innovative, reliable, convenient, and low-cost financial services through its price stable digital credit, it will also onboard users to its complete ecosystem that allows for easy access to financial services from Velo’s trusted partners at multiple touchpoints such as convenience stores, banks, and exchange kiosks.
“Today, Southeast Asia contains an underbanked population of some 450 million people, with more than 20 million being migrant workers who need to work abroad due to systemic poverty and lack of work opportunities,” said Chatchaval Jiaravanon, Chairman of Velo.
“Migrant workers need a convenient remittance payment solution with fees that do not eat into their daily wages, so we launched Velo as a medium to facilitate this process – one that provides them with financial inclusion and empowerment.”
Backed by a family member of the Charoen Pokphand Group and built on the Stellar blockchain, with Jed McCaleb, a co-founder of Stellar as an advisor, Velo will offer the disruptive financial solutions and new business models to many businesses.
With custom value stable credit, centralized system interoperability, enterprise-focused, fiat-on-ramp, and trusted partners network, Velo is a complete ecosystem that aims to bring financial inclusion to the Asian region. Velo aims to be the largest financial protocol, where trillion dollars of stable credits are settled while offering a seamless, one-stop service for consumers to experience the meaning of true financial mobility.