Velera Launches Digital Asset Lab to Drive Stablecoin Adoption
Velera has introduced a new initiative aimed at capitalizing on the rising interest in stablecoins, a digital currency designed to maintain a stable value. Announced on August 20, 2023, the credit union service organization’s Digital Asset Lab is positioned to place credit unions at the forefront of the evolving digital asset landscape.
The initiative responds to the growing significance of stablecoins, which combine the rapidity of digital payments with the reliability of traditional currencies. According to Vladimir Jovanovic, Vice President of Innovation at Velera, “Stablecoins… are emerging to be a potentially pivotal force in global finance.” He emphasized the necessity for credit unions to grasp their roles and responsibilities in the digital asset arena in order to meet member needs while adhering to cooperative principles.
Focus Areas of the Digital Asset Lab
The Digital Asset Lab will concentrate on creating “Velera-engaged” joint ventures that tackle various challenges, including distributed ledger infrastructure, blockchain networks, interoperability, and core banking integrations.
The lab’s first platform partner is Metallicus, a digital asset banking network. This collaboration aims to leverage Metallicus’ multi-purpose blockchain infrastructure, which facilitates rapid learning, testing, and development of solutions vital to Velera’s objectives.
Marshall Hayner, Co-founder and CEO of Metallicus, highlighted the partnership’s alignment with his company’s mission to provide “safe, scalable and compliant” blockchain solutions for credit unions. He noted, “Through this collaboration, we can help credit unions gain hands-on experience with programmable money, reduced costs, and greater security and transparency – laying the groundwork for future innovation in digital assets.”
Implications for the Financial Sector
The integration of stablecoins into traditional finance has been a topic of increasing interest. A recent report from PYMNTS explored how banks are positioning themselves within the crypto custody space, asserting that banks must adapt to a future where tokenized assets and stablecoins become mainstream.
The report stated, “If stablecoins manage to transform into a parallel payments system, controlling custody of reserves is like gaining control of the vaults of a new global currency.” It emphasized that as tokenization potentially converts equities, bonds, and private credit into blockchain-based instruments, custody services will become essential for managing trillions of dollars in transactions.
In this evolving landscape, banks are eager to avoid past mistakes from the FinTech era, where startups rapidly dominated payments, lending, and retail trading while established institutions struggled to catch up. By engaging in custody services early, banks can help shape the future financial infrastructure.
As Velera embarks on this initiative, the Digital Asset Lab could play a crucial role in bridging the gap between traditional finance and the new digital asset economy.
