According to an article published on Medium, Velo Labs has made a partnership deal with Visa giant and Lightnet Group in order to create modern payment solutions for lending businesses in APAC.
VELO is going to be used as the digital asset to collateralize the financial solutions.
Last week, Lightnet Group inked a partnership deal with a major RippleNet member SCB.
Velo Labs and Visa sign MoU, VELO token to be used
Three payment companies, Velo Labs, Lightnet and Visa have signed a memo of understanding to cooperate on building payment solutions in Asia.
They will target micro, small and medium-scale businesses (MSME) working on the local lending market that have not been connected to the global financial network.
According to the recent data from expert agencies, around the globe annually there is $5.2 trillion in MSME lending that is unserved. Over half of this gap is currently observed in the APAC area.
Often people get rejected in banks when they ask for a loan to start a business or make a large purchase, like a car, based on the absence of a credit history or due to being not creditworthy.
However, the new joint venture of Velo, Visa and Lightnet Group intends to solve this problem in the Asia-Pacific region and let customers get loans in exchange for crypto collateral.
VELO will be the token to collateralize the financial solutions offered to the clients.
Thus, the aforementioned companies plan to provide fast and cheap transfers between the banks, payment companies, etc, that participate. Thus, more than one billion of underserved people will be able to access the global banking network and the opportunities that it offers.
Lightnet Group partners with a major RippleNet member
Last week, U.Today reported that Lightnet Group inked a partnership deal with Siam Commercial Bank (SCB) – one of the largest banks in Thailand and a major RippleNet member.
Lightnet is powered by Velo. However, SCB will now power global Lightnet’s remittances from and to Thailand.
In particular, the bank will be clearing Lightnet’s remittance payments and provide easy real-time cash wires for Lightnet.
Velo Labs intends to create a global credit exchange network based on the Velo protocol.
The latter powers digital loans backed by any fiat currency and uses VELO tokens to collateralize them.
Presently, the company works in the South-East Asia in both DeFi and CeFi areas.
Arman Shirinyan
Alex Dovbnya
