ROAD TOWN, British Virgin Islands, Dec. 4, 2020 /PRNewswire/ -- Velo Labs, developer of the Velo Protocol, is excited to announce that it has entered into an agreement with BitGo, a leading digital asset financial services firm. BitGo will provide its best-in-class digital asset custody services to Velo Labs and its alliance network.
The scope of the agreement is two-fold:
Velo Labs will utilize BitGo's qualified custody through BitGo Trust, in order to provide BitGo's pioneering multi-signature custody of VELO token on behalf of Velo Labs.
BitGo will provide safekeeping services for Velo Labs' fiat currency accounts at depository institutions and/or in one or more money market accounts.
Velo Labs and its partners will bring great value to users through a suite of innovative Velo Protocol-powered products, beginning with its robust Federated Credit Exchange Network. Through its Federated Credit Exchange Network, Velo Labs connects an array of traditional, centralized and decentralized finance partners to enable distributed value transfers powered by blockchain technology. At the core of this network is the VELO token. VELO tokens serve as a bridge asset enabling secure value transfers between network participants in an instant and transparent manner using blockchain technology. It also provides cross-chain liquidity together with on-chain/off-chain liquidity and settlement.
"Velo Labs is building an inclusive financial solution that brings affordable and instantaneous financial mobility to its partners and downstream end users. The partnership with BitGo further strengthens our ability to allow safe and secure value storage and transfer in the Velo ecosystem." — Tridbodi Arunanondchai, Vice Chairman of Velo Labs
BitGo pioneered multi-signature security in 2013 with hot wallets and launched BitGo Trust in 2018 for qualified custody. It now provides a full stack of solutions for institutional investors in addition to custody including portfolio and tax management and prime lending and trading services. With the addition of BitGo's custodial services, Velo Labs furthers its mission of providing safety and security to its partners while building the Federated Credit Exchange Network.
"BitGo supports Velo's mission to build a decentralized settlement network," said Mike Belshe, Co-Founder and CEO, BitGo. "Velo's growth in APAC with a focus on payment solutions serves to further address under-served micro, small and medium enterprise lending in the region. This is a timely and important initiative as the ecosystem continues to develop to empower the underbanked."
About Velo Labs
Founded in 2018, Velo Labs is backed by the CP Group and Stellar Network (XLM). Its core mission is to build a Federated Credit Exchange Network that allows partners to safely and securely transfer value between each other with maximized efficiency and transparency. Velo Labs currently serves business partners in the remittance and money transfer markets of Southeast Asia. Through its Federated Credit Exchange Network, Velo Labs aims to solve the inefficiencies in the current remittance and money transfer markets and become a major settlement hub in Asia, eventually expanding to other regions.
Velo Labs develops the Velo Protocol. The Velo Protocol is a blockchain financial protocol enabling digital credit issuance and borderless asset transfers for businesses using a smart contract system. It enables its trusted partners to issue digital credits via a smart contract layer, using the Stellar Consensus Protocol to process and settle transactions. The Velo Protocol can issue digital credits that correspond to any fiat currency.
Through its services, Velo Labs is looking to create a fully interoperable network that will enable its trusted partners (i.e. businesses, banks, digital banks, cash-in/cash out network, e-wallets, DeFi protocols) to make frictionless value transfers that are settled instantaneously in a cheap, secure, and simplified manner. Further use-cases for the Velo Protocol will also be introduced over time. This includes borrowing, lending, staking, and more. Velo Labs seeks to realize its goals by leveraging on its core capabilities, which include a strong leadership team with a solid track record in a wide range of industries, including but not limited to financial services, technology and telecommunications. Velo Labs is backed by a network of major conglomerates in Asia who are driving the use and adoption of the Velo Protocol and VELO token.
BitGo is the leader in digital asset financial services, providing institutional investors with liquidity, custody, and security solutions. In 2020, BitGo launched Prime Trading and Lending, as well as BitGo Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo processes over 20% of all global Bitcoin transactions, and supports over 300 coins and tokens. BitGo's customer base includes the world's largest cryptocurrency exchanges and institutional investors and spans more than 50 countries. BitGo is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners. For more information, please visit https://bitgo.com.
Custody services are offered through BitGo Trust Company, a South Dakota chartered trust company. BitGo is not registered with the SEC as an investment advisor or custodian, and does not offer legal, tax, investment, or other advice. Please consult your legal/tax/investment professional for questions about your specific circumstances.
BitGo Trust Company, BitGo Inc., and BitGo Prime LLC are separately operated, wholly-owned subsidiaries of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, CA.
SOURCE Velo Labs Technology Ltd.