Velo Labs
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Velo Labs

A message from our CEO: Mike’s Quarterly Update

Dear Velo Community,

I hope you’re all keeping safe and healthy.

As we wrap up the third quarter of 2021, it’s time to check in with some updates and insights. I truly relish this chance to connect with you, the community, and to celebrate our milestones and accomplishments. But more than that, this blog is also an opportunity for me to focus on some of the key topics from our community and my hope is that the following post addresses some of your questions. Enjoy!

Celebrating our Milestones

It’s been a busy couple of months at Velo, and I wanted to start this update by celebrating something we’re very proud of: our recent currency corridor launch. The big announcement of the quarter was the launch of our Europe to Thailand corridor. Transactions in the corridor are facilitated using our Velo technology and with the help of two of our trusted partners, TEMPO Payments and Bitazza.

Our core mission at Velo Labs is and will always be improving financial services, with our first focus area being the highly fragmented and inefficient international remittance market. We are focused on building the most efficient settlement network in the world, where cross-border transactions take minutes not days and where payments are more open and interoperable. This also helps achieve our united focus on raising the standard of financial inclusion and mobility as we move into the future. With the launch of this currency corridor, we took the very first step in making our mission a reality.

I’m truly proud of what the team has accomplished with this milestone, and of course a big thanks to TEMPO Payments and Bitazza for working so closely and diligently with us to make this happen. We are excited to continue scaling our product capabilities with TEMPO Payments and Bitazza, as well as growing our list of trusted partners and corridors.

Future Partnerships

Many of you congratulated us on launching Europe to Thailand, and then asked, where to next? Who are the future partners and where are the next countries? As outlined in my first update, a strong strategic priority at Velo is to continue growing the size of our network.

There are a lot of markets in the globe that will benefit immensely from Velo’s Technology. From the banked, to the underbanked, to the unbanked — Velo has the potential to exponentially raise the standard of financial inclusion, so we’re hungry to bring these benefits to as many users as possible. The great news is we are having a ton of fantastic conversations with future partners from around the globe about joining the Velo network. As you may expect, you will be seeing announcements about new partners in Southeast Asia given our fantastic connections in the region. We are equally happy to report that you should be seeing announcements from outside Southeast Asia as well. This is similar to our first corridor being with both Bitazza in Thailand, but also with TEMPO Payments in Europe.

Future Listings

Listings is another topic that comes up in the community. We are excited that in the third quarter we listed on multiple major exchanges such as Bithumb in South Korea and Indodax in Indonesia. These are both leading exchanges in their markets and their inclusion has greatly increased the daily volumes and interest we are seeing in Velo.

In total we are now listed on 9 exchanges, including: OKEx, MXC, Kucoin, VCC, Gate.io, Bitazza, Bitfinex, Bithumb and Indodax. We continue to have regular discussions with additional exchanges and will share news on that front as they go live.

Circulating Supply/ Release

Adding new partners and listings often results in increases to circulating supply, another topic that gets brought up in the community. First I want to thank the Velo team members that have been working hard to resolve any discrepancies across listings and exchanges. We are almost there, but some sites’ processes unfortunately take time.

The VELO token is a utility token, which facilitates the transfer of value quickly and cheaply around the globe. Given this, as we add new partners and increase cross border remittance volumes there is a need for our trusted partners to obtain VELO tokens, which increases the number of VELO tokens in circulation. The partners then lock up the VELO tokens to mint Velo digital credits which are price stable to their associated fiat currency. For example a vUSD is always 1:1 to USD. As we bring on more partners, they will require additional VELO tokens.

Partners are a key reason for increases in circulating supply. Another is early backers and investors in the project who dedicated resources in exchange for tokens. Those tokens are locked up and over time released into circulating supply.

With all this activity: new partners, new corridors, new listings and early backer unlocks, circulating supply will be increasing to approximately 340 million VELO tokens. This is due to the success of the project and the utility of the VELO token. As we continue to see project success you should anticipate additional increases in the future.

What’s next on the roadmap?

As we look to the horizon, I want to share a handful of developments on the roadmap as well as our direction and focus.

First, we are excited to expand our network with additional partners in new countries, opening up new corridors. A large part of this is the continued maturing of our Anchor technology, heavily increasing the automation between our partners and making it as easy as possible for more and more Anchors to join our network.

Second, we are excited to launch new enhancements to our Velo Warp protocol which will allow for the holding of VELO tokens on the Binance Smart Chain. This isn’t the same as listing on Binance, but rather it allows us to take advantage of smart contracts on BSC and provides another convenient mechanism for the community to store their VELO tokens.

Third, we are building capabilities to allow the general public to acquire and store Velo Digital Credits — our price-stable assets pegged 1:1 to local currencies like USD, EUR, CHF. Digital Credits allow for the seamless transfer of value across our network between partners and are the main mechanism for interoperability, scalability and liquidity on the Velo Network. Offering these digital assets to the general public means providing a highly liquid, secure and stable asset for individuals and businesses to hold and / or use for many purposes such as payments to suppliers or family.

Beyond these specifics, Velo’s focus remains firmly on the following strategic priorities:

  • Improving inefficient financial services, particularly cross border payments. Through the use of blockchain technology we will make these faster, cheaper and more secure
  • Enhancing our Federated Credit Exchange (FCX) to enable Liquidity aggregation and Liquidity pools
  • Supporting the compliant use of Digital Credits and VELO Tokens over centralized and decentralized exchanges
  • Improving the interoperability and performance of our blockchain infrastructure by bridging the most popular blockchains with the Velo Protocol and the Warp protocol, allowing for transfer of assets cross-chain.

Until next time

I couldn’t be happier with how far we’ve come and the progress our team continues to make. As we move into the last quarter of a busy and eventful 2021, I can leave you with some certainties: our team will expand, our community will grow, our goals will remain aligned and not only will we achieve some amazing results, but we will continue to increase awareness of the very real change Velo Labs is bringing to the financial service industry.

I look forward to speaking with you again before the New Year.

Stay safe, stay healthy.

Mike

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Velo Protocol

A blockchain financial protocol enabling digital credit issuance and borderless asset transfers for businesses using a smart contract system