Velera has initiated a new venture to capitalize on the increasing interest in stablecoins by launching its Digital Asset Lab. Announced on August 20, 2023, this initiative aims to position credit unions at the forefront of the evolving digital asset landscape.
“Stablecoins, which combine the speed of digital payments with the stability of traditional currency, are emerging to be a potentially pivotal force in global finance,” stated Vladimir Jovanovic, vice president of innovation at Velera, in a news release. He emphasized the importance for credit unions to understand their roles regarding these digital assets as major financial institutions and fintech companies explore stablecoin opportunities.
The Digital Asset Lab will focus on developing joint ventures to tackle several key areas. These include distributed ledger infrastructure, blockchain networks, interoperability needs, and core banking integrations. The first platform partner for this initiative will be Metallicus, a digital asset banking network. Together, they will explore how its multi-purpose blockchain infrastructure can facilitate rapid learning, testing, and building of solutions crucial to Velera’s objectives.
Metallicus Co-founder and CEO Marshall Hayner remarked that this partnership aligns with his company’s mission to deliver “safe, scalable and compliant” blockchain solutions for credit unions across the country. He noted that through this collaboration, credit unions can gain valuable experience with programmable money, leading to reduced costs and enhanced security and transparency.
Recent industry analysis highlights the integration of stablecoins into traditional finance, illustrating how banks are seeking to establish a foothold in the growing crypto custody sector. Reports suggest that this move is essential as stablecoins become a mainstream option in financial transactions.
The implications of this shift are significant. If stablecoins evolve into a parallel payment system, controlling custody of reserves could be likened to having control over the vaults of a new global currency. As noted in a recent report, “If tokenization turns equities, bonds, and private credit into blockchain-based instruments, custody becomes the toll booth for trillions of dollars in transactions.”
Velera’s Digital Asset Lab represents a proactive step for credit unions in navigating the complexities of digital finance. By engaging in partnerships and focusing on innovation, the initiative aims to ensure that credit unions remain relevant in a rapidly changing financial landscape.
