Abstract : By tapping into Velo’s network of key stakeholders and leveraging Stellar, Velo Labs will be able to provide more efficient, affordable, and accessible financial services for millions of people.
On March 15, 2021, Velo Labs and Interstellar jointly announced that the Interstellar team, under the leadership of Mike Kennedy and with the ongoing support of its ecological partners, the Stellar Development Foundation and the Lightnet Group, is integrating with Velo Labs, based in Southeast Asia.
During the "Interstellar and Velo Labs Join Forces Global Strategy Launch Ceremony" held by Velo Labs, ChainDD and Stellar online, Jed McCaleb, the founder of Stellar and Ripple, gave a keynote speech on "New Patterns of Cross-border Payment Field".
The speech content is as follows:
Year after year, the remittance market in Southeast Asia continues to grow. These services are now valued at $150 billion a year. There are millions of unbanked migrant workers that send money back home to their families yet are not well-served by the high fees and slow service provided by the decades-old SWIFT system and fragmented correspondent banking network.
Recognizing that the world’s financial infrastructure doesn’t serve a large majority of the population, the Stellar Development Foundation aims to facilitate the use of decentralized systems to build inclusive and accessible resources for those that need them most.
Recently, Interstellar’s core focus has been encouraging the implementation and adoption of a better cross-currency transaction system in Southeast Asia, driven largely by their work with Velo. Velo has formed a number of strategic partnerships with fintech leaders including Visa, Lightnet Group, Kyber Networks, ChainLink, and others that will continue to expand the company’s reach.
By tapping into Velo’s network of key stakeholders and leveraging Stellar, Velo Labs will be able to provide more efficient, affordable, and accessible financial services for millions of people.
Integrating these two teams is a significant step not only for the companies to continue their work together, but for the entire Stellar ecosystem as it offers the potential to drive more anchors to the network. Anchors connect the Stellar network to traditional banking rails so that all the world's currencies can interoperate on a single, seamless platform.
As the critical link between the Stellar network and the traditional banking system in their respective countries, anchors are positioned to leverage a variety of business models and monetization strategies to best reach their customers.
Together we will increase the number and types of on/off ramps in Asia. This will lead to new business opportunities for both Velo and Stellar communities. This team will deliver products and services built on Stellar that contribute to long-term growth and sustainability of the network and foster use cases that have clear value for end-users.
Our plan is to continue both of these efforts, and also start to focus more explicitly on adding and growing use cases in ways that lead to scalable network effects as we move ever closer to the future we want to see, where Stellar is connecting global financial infrastructure so that it’s faster, more affordable, and more accessible to send money around the world.
When I created Stellar and when I founded Interstellar, this was the kind of growth and engagement I hoped to see in the ecosystem — with projects and talents from around the world finding innovative ways to use this technology and make a difference in people’s lives. I believe that this next phase of Velo Labs is going to make a significant difference for these companies and the billions of people they can serve.