Singapore-based financial technology company Lightnet Group has received $50 million as a commitment from investment mogul LDA Capital.
As agreed by both entities, the funds will be used to boost and accelerate the Lightnet technological partners’ blockchain built by Velo Labs Technology. Also, the funds will be utilized in fostering the growth and advancement of the fintech firm’s infrastructure and operations.
Optionally, Lightnet Group may choose to increase the commitment over the next three years to about $100 million. According to Lightnet Group, Web3.0 and cross-border payments boost is also at the core of this fund. All these are achievable once the Velo protocol is improved upon.
Encompassing Lightnet Commitment
The Velo blockchain technology is a decentralized protocol built by Velo Labs. It is made up of a digital credit issuance mechanism and a digital reserve system. The aim of the Velo technology is “to make a decentralized payment network that permits its trusted partners to transfer value among one another securely, quickly, and with utmost transparency.”
Velo protocol operative jurisdiction is within and around the Asia Pacific region. Although, this time around, with the fund, the Velo protocol will reach users globally. The protocol permits only licensed financial service providers to create and exchange Velo digital assets. These assets are pegged one-to-one with local currency with the native VELO token used to help maintain the peg.
According to Warren P. Baker III, the Managing Director and Co-Founder of LDA Capital “Lightnet’s next generation financial infrastructure, along with Velo Labs’ disruptive technology, will be the future rails for dynamic and regulated markets providing financial mobility and inclusivity across Asia.”
As part of the fund utilization, more talents will be employed across the Lightnet Group teams as the firm looks forward to its growth and expansion. While transcending financial systems around the globe, Lightnet plans to build the first centralized decentralized finance (CeDeFi) banking network in Asia.
Earlier in the month, Geeq, a multi-blockchain platform secured a milestone-based financial commitment of $25 million from GEM Digital. The investor plans to release the fund gradually according to Geeq’s performance.