Velera has initiated a new venture aimed at capitalizing on the increasing interest in stablecoins. On August 20, 2023, the credit union service organization announced the establishment of its Digital Asset Lab, which seeks to position credit unions at the forefront of the digital asset ecosystem.
According to Vladimir Jovanovic, Vice President of Innovation at Velera, stablecoins represent a significant shift in global finance. “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,” Jovanovic stated in a press release. He emphasized the need for credit unions to comprehend their roles in this evolving landscape to effectively meet member needs and uphold cooperative principles.
Fostering Innovation through Collaboration
The Digital Asset Lab will focus on creating joint ventures that address key areas such as distributed ledger infrastructure, blockchain networks, interoperability, and core banking integrations. The initiative aims to enhance the capabilities of credit unions in navigating the complexities of digital finance.
One of the lab’s first platform partners is Metallicus, a digital asset banking network. The collaboration will explore how Metallicus’ multi-purpose blockchain infrastructure can facilitate rapid learning, testing, and the development of solutions that align with the objectives of Velera’s Digital Asset Lab.
Marshall Hayner, Co-founder and CEO of Metallicus, 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.” This partnership aims to provide credit unions with the tools necessary to adapt to the growing demand for digital financial solutions.
The Broader Context of Stablecoins in Finance
The launch of the Digital Asset Lab occurs at a time when the integration of stablecoins into traditional finance is gaining momentum. A recent report by PYMNTS highlights how banks are actively exploring opportunities in the crypto custody space. This movement signifies a shift towards a financial architecture where tokenized assets and stablecoins become commonplace.
If stablecoins successfully evolve into a parallel payments system, the control over custody of reserves will be akin to managing the vaults of a new global currency. The potential for tokenization to transform equities, bonds, and private credit into blockchain-based instruments underscores the importance of custody solutions in managing trillions of dollars in transactions.
As financial institutions strive to avoid being sidelined like during the FinTech era, securing custody capabilities presents an opportunity to shape the future landscape of digital finance. The emergence of initiatives like Velera’s Digital Asset Lab reinforces the critical role credit unions will play in this transformation.
