What is Velo (VELO)?

Deep Dive

1. Purpose & Value Proposition

Velo aims to solve inefficiencies in global remittances and institutional settlements by acting as a blockchain-based clearinghouse. Its core product, the Velo Protocol, allows partners to issue collateral-backed digital credits (e.g., USDV stablecoin) for frictionless transactions. The project targets Asia’s $1.8T cross-border payment market, collaborating with entities like Lightnet for remittance infrastructure and Visa for compliant settlements (Velo Blog).

2. Technology & Architecture

Velo uses a hybrid approach:
- Nova Chain: A Solana-compatible blockchain for fast, low-cost transactions.
- Warp Bridge: Enables cross-chain interoperability (Stellar, BSC, Ethereum).
- Universe DEX: A hybrid decentralized exchange merging centralized order-book speed with self-custody security.
The protocol leverages the Stellar Consensus Protocol for settlement and smart contracts for collateral management (Messari Report).

3. Ecosystem & Key Differentiators

• USDV Stablecoin: Backed by VELO tokens and real-world assets (e.g., tokenized gold via PLG Gold).
• Institutional Partnerships: Collaborates with Paxos (USDL integration), Securitize (BlackRock’s BUIDL), and governments (Laos digital gold project).
• Web3+ Infrastructure: Orbit Wallet for loyalty programs and PayFAI, an AI-driven settlement layer for merchants.
  Unlike pure DeFi projects, Velo emphasizes regulatory compliance and TradFi integration, positioning itself as Asia’s Web3 liquidity backbone (Velo x Paxos).

Conclusion

Velo is a blockchain ecosystem designed to merge traditional financial systems with decentralized tools, prioritizing Asia’s cross-border payment corridors. Its hybrid architecture, stablecoin utility, and institutional partnerships differentiate it from competitors. How will its focus on RWAs and regulatory alignment impact adoption as CBDCs gain traction?