SINGAPORE, Sept. 26, 2024 /PRNewswire/ -- Velo Labs, a leader in Web3-based financial solutions, is integrating OpenEden's tokenized U.S. Treasury bills (TBILL) as a reserve collateral asset for USDV, the protocol pegged against stablecoins to process up to $150 million in daily transactions on Velo Finance.
This partnership with OpenEden marks an important milestone in Velo Labs' mission to become a key aggregator of tokenized Real-World Assets (RWA). Until recently, USDV had been over-collateralized by a basket of assets like Velo's native token (VELO) and USDT.
The inclusion of high-quality, liquid assets like OpenEden's tokenized U.S. Treasury bills strengthens the collateral backing USDV. OpenEden is the first and only tokenized U.S. T-Bill product to receive an "A" rating from Moody's.
Adding tokenized RWAs to the stablecoin's reserves also unlocks new sources of yield for USDV holders. For instance, users could potentially stake USDV to earn yields from the returns generated by underlying collateral like OpenEden's TBILLs.
This development is part of Velo's "Real World Restaking" (RWR) initiative, which aims to allow users to "restake" their crypto assets, particularly the VELO token or other supported tokens, into vaults backed by tokenized RWAs like traditional financial assets or collateralized loans.
By incorporating institutional-grade assets into its ecosystem through USDV, Velo Labs offers investors and token holders access to stable, secure, and transparent sources of real-world yields. This contrasts with most decentralized finance (DeFi) platforms, which generate yields from highly volatile and speculative native tokens.
This strategic move aligns with Velo Labs' broader goal to become the leading platform for aggregating tokenized RWAs and the Payfi ecosystem by using USDV as a potential payment method (where acceptable), with TBILL as the reserve asset. This ensures that USDV is more accessible, transparent, and efficient for users, not only across Southeast Asia but globally.
"Partnering with OpenEden marks a major step forward for Velo Labs as we expand our role as a key player in the RWA space," said Korapat Arunanondchai, Velo Lab's Chief Operating Officer.
"By bringing tokenized U.S. Treasury bills into our network, we're giving users and token holders access to stable and secure financial products while also opening up new avenues for earning yield. Our focus is on blending traditional finance with blockchain in a way that genuinely benefits our users."
About Velo Labs
Velo Labs is a global pioneer in Web3-based financial solutions, offering a cutting-edge liquidity and settlement network for secure, efficient value transfers. Backed by the Stellar Network, our reach has expanded beyond Southeast Asia and the Pacific, now serving partners worldwide. We connect and complement the gap between traditional banking infrastructure and Web3, leading the way in blockchain mass adoption. Our extensive Web3-based payment network positions us as a global heavyweight. Velo Labs offers a diverse range of Web3-based products tailored for individuals, merchants, corporations, and enterprises worldwide - dedicated to empowering global financial connectivity and expanding accessibility globally.
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About OpenEden
OpenEden provides 24/7, on-chain access to tokenized U.S. Treasury securities through its TBILL Vault platform, catering to Web3 CFOs, DAO treasury managers, and institutional investors looking for low-risk, highly liquid crypto cash management solutions. As the first tokenized Real-World Asset (RWA) product to receive Moody's "A" rating, OpenEden's TBILL has rapidly grown to become the largest tokenized U.S. Treasuries-backed token across Asia and Europe since its launch in early 2023.
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