“We’re the Web3+ ecosystem set to become a financial superhighway of Asia”: AMA recap with Velo

“What we’re trying to do is to solve problems with inefficient cross-border transactions, fragmented liquidity and limited access to digital financial services,” said Korapat Arunanondchai, the chief operating officer of Velo. He was a guest speaker on a recent Cointelegraph AMA, during which he discussed the project.

As Arunanondchai explained, Velo’s “Web3+” ecosystem currently includes several products. The Universe DEX offers multi-asset trading, spot trading, FX, and perpetuals across various currencies, as well as automated trading bots and social trading features. Universe also aggregates liquidity across different supported chains.

Velo has also been developing Orbit, an enterprise-grade layer for Web3 payments, wallets, and settlements that powers different solutions for merchants.

At the core of it all is the VELO token, which is responsible for driving liquidity, rewards, and settlement flows across the ecosystem. “Our token is designed to motivate people in certain areas and creates a seamless loop between DeFi innovation and real-world value," Arunanondchai added.

According to him, VELO tokens can be used as collateral to issue digital credits within the network: “It relies on the Digital Reserve System, a mechanism designed to lock value and support digital credits. VELO uses various assets to back these credits, including USDL or other stablecoins."

“Our infrastructure connects different parts of the financial services market and makes them available in the Web3 market as well,” he emphasized. “For example, we’ve integrated USDL through our partnership with Paxos. Unlike others, it is a yield-bearing stablecoin, which is quite powerful for areas that might not have access to a stable asset. This allows us to have different use cases, such as providing our users in Southeast Asia with access to U.S.-denominated yields directly onchain.”

Meanwhile, Velo isn’t limiting itself to USDL. “Stablecoins pegged to local currencies, such as the Japanese yen or Chinese yuan, can also support our use cases and enable more seamless liquidity transfers. We’ll see how the market develops,” said Arunanondchai.

Velo’s eventual goal is to build programmable finance, which will open up solutions for the modern workforce’s needs. “If you’re an accountant who has to send money to hundreds of people in different countries, it can be very cumbersome. Blockchain allows you to automate all these payments while factoring in taxes, currencies, and compliance through programmable logic,” the speaker expanded.

To support global deployment, Velo explores licenses for e-payments and cross-border services to help meet the needs of businesses, especially those with stricter compliance requirements, such as publicly listed companies.

However, Velo’s starting point is Southeast Asia, where Arunanondchai sees opportunities. “It’s a very interesting market with a large population and many inefficiencies within the system. That’s why it’s an area where we can use our platform to overcome challenges,” he concluded.

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