Overview
Velo Labs, a pioneer in Web3-based financial solutions, has taken a significant step in integrating institutional-grade assets into its ecosystem. By incorporating BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, into the reserves backing its stablecoin USDV, Velo Labs has reinforced its position as a leader in tokenized real-world assets (RWA) in Southeast Asia.

Challenge
Access to high-quality, yield-bearing financial products has traditionally been limited in Southeast Asia. Retail users and businesses in the region often face barriers in securing reliable, bankless value storage and cross-border transactions. Velo Labs recognized the need for an on-chain financial ecosystem that could bridge the gap between traditional banking systems and the growing Web3 economy while offering institutional-grade security and yield generation.

Solution
Velo Labs leveraged its payment app and broader ecosystem to integrate BlackRock’s tokenized fund, providing users with:

• Seamless Transactions: Over 1 million Velo users and vendors can transact with USDV for payments, remittances, and cross-border transfers.
• Institutional-Grade Yield: Users earn yield on USDV held within the ecosystem, mirroring the returns of BlackRock’s liquidity fund.
• 24/7 Off-Ramping: Instant access to local currency withdrawals through partnerships with local banks.
• Expanded Investment Opportunities: Traders on Velo’s Universe exchange and DeFi protocol, Velo Finance, can leverage USDV for liquidity pools, staking, and further yield optimization.

Results
Since the integration, Velo Labs has strengthened its value proposition by:

• Enhancing financial accessibility for individuals and businesses across Southeast Asia.
• Expanding the use of USDV beyond payments to trading and DeFi applications.
• Cementing itself as a key player in the RWA space with tokenized real-world assets such as gold and treasuries.

Industry Impact
Velo Labs’ initiative represents a major milestone in institutional adoption of Web3 technology in Southeast Asia. By offering access to tokenized treasuries, Velo is providing users with financial instruments that were previously available only to institutional investors. This move strengthens the credibility of blockchain-based finance and sets a precedent for future collaborations between traditional financial institutions and Web3 ecosystems.

Key Takeaways

• Institutional-Grade Yield for All: Velo Labs has democratized access to BlackRock’s tokenized fund, enabling users to earn stable returns.
• Borderless Financial Solutions: The integration enhances the efficiency of digital payments, remittances, and investments.
• Strategic Expansion in RWA: With initiatives like gold tokenization, Velo Labs continues to push the boundaries of real-world asset adoption.

Conclusion
Velo Labs’ integration of BlackRock’s tokenized fund marks a new era in Southeast Asia’s financial landscape. By bridging the gap between traditional and decentralized finance, Velo Labs is creating a more inclusive, efficient, and globally connected financial ecosystem.

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