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The Velo Protocol Enables Real-World Adoption, Solves Issues with Digital Credits
- The Velo Protocol issues digital credits after staking VELO tokens as collateral. Collateral guidelines follow Digital Reserve policies to ensure liquidity.
- The Velo Protocol can issue digital credits pegged to any fiat currency.
- The Velo Protocol has industry-aligned AML/KYC requirements.
SINGAPORE, July 1, 2020 /PRNewswire/ -- The Velo Protocol, a blockchain financial protocol enabling digital credit issuance and borderless asset transfer for businesses using a smart contract system, is poised to become the world's largest digital credit protocol, capable of generating trillions of dollars worth of digital credits in service of numerous real-world use cases including cross-border remittance, lending, payment and loyalty point programs. It is created by Velo Labs.
The Velo Protocol solves three major issues currently plaguing the adoption of digital credits: a lack of transparency, limited versatility, and inadequate regulatory compliance.
- Velo emphasizes transparency. Centralized digital credits lack the necessary independent audits to verify its fiat currency reserves. Many are accused of impropriety that lead to reasonable concerns about over-issuance and result in crippling price fluctuations. The Velo Protocol does not require a fiat currency reserve. The Velo Protocol issues digital credits only after staking VELO tokens as collateral. Collateral guidelines follow Digital Reserve policies to ensure liquidity. All staked VELO tokens are publicly recorded on the blockchain.
- Velo emphasizes versatility. Decentralized digital credits are impractical for real-world adoption as they suffer from inflexible use cases. While several hae addressed issues of trust and transparency by using cryptocurrencies like Ethereum as collateral, they remain pegged to a single fiat currency – usually USD. This may work for businesses that are already USD-dominant, but the vast majority of businesses worldwide must make transactions in their local currency. Unlike existing digital credits, the Velo Protocol can issue digital credits pegged to any fiat currency.
- Velo emphasizes regulatory compliance. Existing digital credits do not sufficiently emphasize regulatory compliance. Many shirk their responsibility to actively prevent money laundering activities and lack the necessary AML/KYC solutions to adhere to regulators' compliance requirements. The Velo Protocol is designed with regulatory compliance in mind. To issue digital credits using the Velo Protocol, an individual must first join Velo's network of Trusted Partner by completing a series of qualification audits and AML/KYC procedures.
Velo Labs recognizes the opportunity for a fully transparent, useable, and compliant digital credit protocol and has entered into an agreement with Lightnet. Lightnet, a Singapore-headquartered fintech company dedicated to improving the lives of the unbanked and underbanked populations throughout Asia Pacific, is building an inclusive international remittance ecosystem around the Velo Protocol. Lightnet is co-founded by industry figurehead Chatchaval Jiaravanon, whose family controls Thai conglomerate Charoen Pokphand Group. This real-world use case already positions the Velo Protocol among the upper echelon of digital credit protocols on the market.
Tridbodi Arunanondchai, Vice Chairman and Group CEO of Lightnet continues: "The Velo Protocol's compliance-focused approach makes Velo Labs a perfect match for Lightnet. We are excited by the real-world use cases that the Velo protocol makes possible."
About Velo Labs
Velo Labs develops the Velo Protocol. It is a blockchain financial protocol enabling digital credit issuance and borderless asset transfer for businesses using a smart contract system. The Velo Protocol can issue digital credits pegged to any fiat currency. It solves three major issues plaguing the adoption of digital credits: a lack of transparency, limited versatility, and inadequate regulatory compliance.
Velo Labs' core mission is to build a decentralized settlement network that allows partners to safely and securely transfer value between each other in a timely and transparent way. The initial focus is to serve business partners in the remittance and money transfer markets of Southeast Asia. The immediate effects of Velo Labs' partners using the Velo Protocol will be felt by the large population of underbanked and financially underserved in the region, as they enjoy lower fees, faster transactions, wider coverage, and increased access to innovative financial products and solutions.
Reference
Official Website: https://velo.org/
Follow the project on Twitter: https://twitter.com/veloprotocol
SOURCE Velo Labs
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