Velera has announced the establishment of its Digital Asset Lab, a new initiative aimed at harnessing the rising significance of stablecoins in the financial sector. This launch, made public on August 20, 2023, positions credit unions to play a vital role in the evolving landscape of digital assets.
According to Vladimir Jovanovic, the vice president of innovation at Velera, stablecoins represent a unique intersection of speed and stability. He stated, “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.” As established financial institutions, fintech companies, and global retailers explore opportunities with these digital assets, Jovanovic emphasized the necessity for credit unions to understand their responsibilities in order to meet their members’ needs and adhere to cooperative principles.
Focus Areas of the Digital Asset Lab
The Digital Asset Lab will concentrate on developing “Velera-engaged” joint ventures that address key areas such as distributed ledger infrastructure, connectivity, and interoperability needs, as well as core banking integrations. The lab’s inaugural platform partner is Metallicus, a digital asset banking network. This collaboration will investigate how Metallicus’s multi-purpose blockchain infrastructure can facilitate rapid learning and testing, crucial for the objectives of Velera’s Digital Asset Lab.
Marshall Hayner, co-founder and CEO of Metallicus, highlighted the strategic alignment of this partnership with his company’s commitment to providing “safe, scalable and compliant” blockchain solutions tailored for credit unions. He noted, “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.”
Stablecoins and Their Role in Traditional Finance
The growing integration of stablecoins into traditional financial systems has been a focal point in recent discussions within the industry. A report by PYMNTS examined the implications of banks entering the crypto custody space, noting that they are establishing a foothold in a future where tokenized assets and stablecoins may become mainstream.
As the report suggests, should stablecoins evolve into a parallel payments system, controlling custody of reserves would equate to gaining control over the vaults of a new global currency. The potential tokenization of equities, bonds, and private credit into blockchain-based instruments could position custody as a critical component for facilitating trillions of dollars in transactions.
This proactive approach by banks seeks to avoid the missteps of the FinTech era, where startups dominated payments, lending, and retail trading while traditional institutions lagged. The emphasis on custody offers banks an opportunity to shape the underlying framework of digital finance early on.
The launch of Velera’s Digital Asset Lab marks a significant step for credit unions as they adapt to emerging financial technologies. As the landscape evolves, the focus on stablecoins will likely play an essential role in shaping the future of digital finance.
