LDA Capital has agreed to give $50 million to Velo Protocol the fintech company Lightnet Group, which makes blockchain-based cross-border payment infrastructure. The company announced this on Monday.
Lightnet, which is based in Singapore, said it will use the money to improve Web3 and cross-border payments through the Velo labs, as well as to improve the technology behind the Velo labs. Over the next three years, the company has the option to increase the total commitment to up to $100 million.
The Velo labs, which was made by Lightnet partner Velo Labs, is focused on international payments, especially in the Asia-Pacific area. According to the website, the protocol lets licensed financial institutions make and trade Velo digital assets that are tied to local currency one-to-one. The native VELO token is used to help keep the one-to-one link.
In 2020, Lightnet’s Series A funding round brought in $31.2 million. It got the money from UOB Venture Management, the investment arm of Singapore-based United Overseas Bank, Seven Bank, HashKey Capital, and other places.