Velo Labs Expands Stellar Partnership: BlackRock’s Tokenized Fund Goes Live in Southeast Asia
Velo Labs’ Stellar Expansion: BlackRock’s BUIDL Hits Southeast Asia in September 2024
Velo Labs, the Web3 liquidity pioneer backed by the Stellar ($XLM) network and CP Group, has deepened its collaboration with Stellar to integrate BlackRock’s tokenized short-term Treasury fund into its ecosystem. Announced on September 11, 2024, this move allocates a portion of Velo’s USDV stablecoin reserves to BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize. For crypto newcomers, BUIDL is BlackRock’s on-chain money market fund, offering 4-5% yields on U.S. Treasuries with institutional-grade security. Velo’s Orbit app, serving 1M+ users and processing $150M+ daily across Southeast Asia, now lets users earn these yields on-chain while using USDV for payments and remittances. As Velo co-chairman Chatchaval Jiaravanon said, “We’re building bridges for frictionless, borderless payments in Asia.”
The Warp Bridge: Seamless Access to Institutional Yields
The integration hinges on Velo’s Warp Bridge, a cross-chain tool that connects Stellar’s rails to broader DeFi ecosystems. Warp enables USDV holders to tap BUIDL’s liquidity without leaving the Velo app – swap, stake, or earn yields in seconds. Specifically, over 1M Orbit users and vendors now leverage USDV for seamless transactions, value storage, cross-border transfers, and 24/7 off-ramping to local currencies at banks – all while compounding Treasury returns. As PRNewswire reports, this follows Velo’s Laos gold tokenization partnership, solidifying its role in RWA adoption. Additionally, Warp’s Stellar foundation ensures sub-penny fees and 5-second settlements, outpacing traditional FX by 80% in cost and speed. Thus, for Southeast Asia’s $100B+ remittance market, it’s a lifeline: Hold USDV, earn BUIDL yields, spend locally.
Stellar’s Backbone: Why $XLM Powers Velo’s Vision
Stellar is the ideal foundation for Velo’s ambitions. Its network handles 1,000+ TPS with $0.00001 fees, perfect for high-volume remittances and RWA flows. Velo, built on Stellar since 2018, uses federated credits like USDV for stable, compliant transfers across 190+ countries. As Cointelegraph notes, BUIDL’s addition, tokenized by Securitize, diversifies USDV reserves, blending BlackRock’s $500B+ AUM with Velo’s Orbit ecosystem. For instance, a Filipino worker sends $200 USDV via Velo; it settles on Stellar, earns BUIDL yield overnight, and off-ramps to PHP at a local bank. As a result, Velo’s $150M daily volumes (up 50% QoQ) underscore Stellar’s scale: $4.2B quarterly payments, second to Ethereum in RWAs.
Impact: Democratizing Yields and Driving Adoption
This collaboration democratizes institutional yields for Southeast Asia’s unbanked 40%+. Orbit users, from vendors to freelancers, store value without banks, earn on-chain, and remit globally. Early metrics: 500K+ USDV wallets activated post-launch, with BUIDL exposure boosting retention 30%. For $XLM holders, it’s demand surge, more Velo activity means higher network fees in Lumens, with XLM up 4% to $0.32. As Binaryx reports, Velo’s Warp positions Stellar as Asia’s RWA hub, rivaling Ondo’s $176M USDY. Hence, even retail users win: Access BlackRock-grade returns in a simple app, bridging TradFi to Web3.
Velo’s Horizon: From Reserves to Regional Revolution
In short, Velo’s Stellar expansion with BUIDL isn’t a gimmick, it’s financial access redefined. 1M+ users earn yields on remittances. Blockchain meets BlackRock. For holders, XLM eyes $0.50. Newcomers get easy entry. Platforms like Lumexo trade XLM with low fees. As Q4 2024 pilots scale, Southeast Asia’s $100B remittances digitize. Stellar leads.