Velo Protocol

Velo Protocol is a blockchain-based financial infrastructure platform developed by Velo Labs, designed to facilitate collateral-backed digital credit issuance and cross-border value transfers for businesses. Launched in 2018, Velo Labs was founded with the backing of one of Southeast Asia's largest conglomerates, CP Group (Charoen Pokphand Group). ^[1] Operating on the Stellar network, Velo Protocol aims to enhance financial accessibility and efficiency across its federated credit exchange network that integrates elements of both decentralized finance (DeFi) and centralized finance systems (CeFi). ^[1]​

History

Velo Labs was established in 2018 with the goal of transforming digital value transfer through blockchain technology. A notable milestone in its history was the acquisition of Interstellar in the first quarter of 2021, which brought new technology and senior management into the fold. ^[1] The company is supported by the CP Group, enhancing its credibility and network within Southeast Asia's financial sectors. ^[1]​

In 2024, Velo Labs formed a partnership with OpenEden to use tokenized U.S. Treasury Bills to bolster the reserves backing its USDV stablecoin. ^[2]​

Technology and Architecture

Velo Protocol utilizes the Stellar Consensus Protocol for transaction processing and settlement, supporting efficient and secure financial operations. This technology is foundational for the Velo financial ecosystem, allowing digital credits to be issued and transferred with minimal friction. ^[3]​

Central to Velo’s technological capabilities is Warp, a multi-chain bridge facilitating asset transfers across various blockchain networks, including Solana and EVM-compatible chains. ^[3] This interoperability is important for ensuring seamless cross-border transactions, which are central to Velo’s mission. Additionally, the network's smart contract functionality is supported by the Hermès Warp Protocol, creating bridges among Stellar, Evrynet, and Ethereum. ^[4]​

The Velo ecosystem also includes a peer-to-peer mobile payments application named Orbit, which enhances user access to blockchain-based financial services. ^[5]​

Products and Use Cases

Velo Protocol facilitates issuance and management of digital credits. It introduced USDV, a stablecoin collateralized by both fiat and cryptocurrencies to support price stability. ^[3] These digital credits are used within the Velo ecosystem to provide efficient, secure, cross-border value transfers.

Velo has also pursued real-world asset tokenization, expanding its offerings to include tokenized representations of tangible assets. ^[3]​

Tokenomics

The Velo ecosystem is powered by its native token, VELO. Originally, the project planned for a maximum token supply of 30 billion, but this was reduced to 24 billion following a token burn event in 2022. ^[3] VELO tokens are used as collateral for issuing digital credits and to participate in the network's ecosystem. ^[3]​

VELO also exists as a wrapped BEP-20 token on the BNB Smart Chain, making it accessible to users with EVM-compatible wallets. ^[3]​

Leadership and Governance

Velo Labs is chaired by Chatchaval Jiaravanon, with Tridbodi Arunanondchai serving as vice chairman. Tridbodi is also involved with other projects, serving as Group CEO of Lightnet Group and EvryNet. ^[1]​