SINGAPORE, Jan. 19, 2021 /PRNewswire/ — Singapore-based fintech company Lightnet Pte. Ltd. has entered into a strategic partnership with, among others, Malaysia-based Asia Digital Bank Ltd. (Labuan Investment Bank), and British Virgin Island-based Velo Labs Technology Ltd. to jointly develop cross-border business solutions.
With a Memorandum of Understanding in effect between the parties, Lightnet, Asia Digital Bank and Velo Labs will collaborate on several areas:
- Lightnet will provide Asia Digital Bank (Labuan Investment Bank) with solutions focused on cross-border transfer of value;
- Velo Labs will collaborate with Asia Digital Bank (Labuan Investment Bank) to conduct pilot projects relating to adoption of digital assets in financial market activities; and
- Lightnet and Velo Labs will provide technology solutions to the collaborations.
Lightnet is a Singapore headquartered fintech company. It is co-founded by Chatchaval Jiaravanon – industry figurehead and member of the Charoen Pokphand Group – Thailand’s largest conglomerate, and ex-investment banker Tribodi Arunanondchai. Following a US$31.2 million Series A financing in late January 2020, the company is now backed by eight Asian conglomerates including UOB Venture Management, Seven Bank, Uni-President Asset Holdings, HashKey Capital, Hopeshine Ventures, Signum Capital, Du Capital and Hanwha investment & securities. Lightnet is dedicated to improving the lives of the unbanked and underbanked by building an inclusive international remittance ecosystem that will increase the efficacy of existing money transfer operators, financial institutions and other cross-border payment providers.
Tridbodi Arunanondchai, CEO of Lightnet Group, says, "Lightnet and Asia Digital Bank (Labuan Investment Bank) both excel in terms of technology and business operations. The Lightnet Group adopts the Velo Protocol as its blockchain protocol and positions itself as the next generation clearing and settlement network across the Asia Pacific region by leveraging blockchain and connecting existing financial systems with its network of cash agents and wallets, while Asia Digital Bank (Labuan Investment Bank) focuses on cross-border asset operations that are powered by new financial technologies such as blockchain and digital payment methods that enable cross-border digital asset transfer. The partnership will combine the best of both parties and will undoubtedly improve the circulation of cross-border financial elements and the degree of market openness."
Founded in 2018, Velo Labs’ core mission is to build a Federated Credit Exchange Network that allows partners to safely and securely transfer value between each other with maximized efficiency and transparency. Backed by Stellar Network and CP Group, Velo Labs is currently serving business partners in Southeast Asia. By connecting the legacy finance, CeFi and DeFi industries, Velo Labs’ Federated Credit Exchange Network positions Velo Labs as one of few blockchain projects with a clear path towards mass adoption.
In December of 2020, the Asia Digital Bank (Labuan Investment Bank) officially received the digital banking license from the Labuan Financial Services Authority (Labuan FSA). The license is the first digital investment bank license issued by Labuan FSA. Asia Digital Bank is a wholly-owned subsidiary of the offshore Chinese state-owned banking institution – Asia Pacific Investment Bank. Asia Pacific Investment Bank was established overseas by the Nanjing Zijin Investment Group and is one of China’s leading state-owned enterprises. Asia Digital Bank is committed to promoting the transformation from traditional financial services to digital finance by developing a world leading digital asset trading platform for inclusive financial services, thereby realizing its mission to become an operator for digital assets worldwide.
Chris Wang, CEO of Asia Pacific Investment Bank (Asia Digital Bank’s holding parent company) says, "China and Singapore have enjoyed a long history of financial cooperation. Malaysia and Singapore are also close neighbours. The collaboration between Asia Digital Bank and Lightnet on cross-border payment and settlement, as well as cross-border asset flow is bound to help improve the close collaborations of the international cross-border service network among China, Malaysia and Singapore, and even the entire "ASEAN + Greater China" region. We will carry out substantive cooperation in technology and business in core digital financial services such as offshore RMB business, digital assets business and global cash management business."
In accordance with the agreement to apply innovative digital finance solutions in the "ASEAN + Greater China" region, Lightnet Group, Velo Labs and Asia Digital Bank (Labuan Investment Bank) will start on technology communication and business adoption discovery in the beginning of 2021, thereby ensuring a steady landing of the partnership.