Velera has initiated a new venture aimed at harnessing the increasing popularity of stablecoins with the launch of its Digital Asset Lab on August 20, 2023. This initiative seeks to position credit unions at the forefront of the expanding digital asset and stablecoin landscape.
As stated by Vladimir Jovanovic, vice president of innovation at Velera, “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.” His comments highlight the importance of stablecoins in the evolving financial ecosystem, especially as major financial institutions, fintech companies, and global retailers explore their potential.
The Digital Asset Lab plans to focus on developing “Velera-engaged” joint ventures to tackle critical areas such as distributed ledger infrastructure, blockchain networks, interoperability needs, and core banking integrations. This strategic approach aims to ensure credit unions can effectively meet their members’ needs while upholding cooperative principles.
Metallicus, a digital asset banking network, will serve as the lab’s first platform partner. The collaboration will explore how Metallicus’s multi-purpose blockchain infrastructure can facilitate rapid learning, testing, and the development of solutions central to Velera’s Digital Asset Lab initiatives.
Marshall Hayner, co-founder and CEO of Metallicus, emphasized the significance of this partnership, stating, “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.” This partnership aims to provide credit unions with the tools they need to navigate the complexities of digital finance.
The ongoing integration of stablecoins into traditional financial systems has been under scrutiny recently. A report from PYMNTS highlighted that banks are increasingly entering the custody race, aiming to secure a foothold in a future financial architecture where tokenized assets and stablecoins could become mainstream. The report noted, “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.”
This movement towards stablecoins and tokenization reflects a broader trend where banks are keen to avoid the pitfalls of the FinTech era, during which startups gained significant market share in payments, lending, and retail trading while traditional institutions struggled to keep pace. By focusing on custody, banks can shape the foundational structures of digital finance early on.
As Velera embarks on this initiative, the implications for credit unions and the broader financial landscape remain significant. The Digital Asset Lab is poised to play a crucial role in defining how these institutions will engage with emerging digital assets, ensuring they remain relevant in a rapidly transforming financial environment.