- The MoU will see the two organisations work toward bridging traditional and digital assets.
- Lightnet will use the Velo Protocol to offer remittance services to migrant workers in SE Asia.
- The FinTech firm also intends to launch multi-currency virtual accounts.
Singapore-based FinTech company Lightnet Pte. Ltd has signed a memorandum of understanding (MoU) with SEBA Bank, FINMA-licensed Swiss bank. A report unveiled this news on August 25, noting that this collaboration aims to offer a secure and accessible bridge between digital and traditional assets. In so doing, the organizations aim to reinforce the Lightnet’s Group remittance settlement abilities.
According to the report, this MoU will see SEBA Bank serve as the banking counterparty for Lightnet Group. In so doing, it will enable settlements, correspondences, and remittances in fiat and cryptocurrencies. The bank will also act as a substitute settlement banking network, account, custodian, and settlement bank for money transfer operators (MTOs) in cryptocurrencies.
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Commenting on this partnership, Chatchaval Jiaravanon, Lightnet’s chairman, and co-founder said,
“The partnership with SEBA has significantly enhanced the efficiency and interoperability of settlements between digital currency and the real world. Drawing on our complementary strengths with SEBA Bank, our new joint venture entity in Singapore will be poised to serve both retail and institutional investors from the globe with a more transparent and secure settlement solution.”
Leveraging the Velo Protocol to disrupt remittance in Southeast Asia
Per the publication, this joint venture will see Lightnet use a blockchain financial protocol dubbed Velo Protocol. Through this protocol, Lightnet will offer remittance services to millions of unbanked migrant workers across Southeast Asia. The firm will reportedly offer low fees, swift transactions, and broader coverage. In so doing, it will help the workers avoid t the global remittance industry, which is characterized by high transaction fees, fragmentation, and undependable payment routes.
According to Tridbodi Arunanondchai, co-founder and CEO of Lightnet Group, Velo will also act as a bridge asset, allowing cross-chain liquidity. It will also enable on-chain to off-chain liquidity and settlement seamlessly.
Lightnet also intends to roll out multi-currency virtual accounts to tackle the inadequacies of global trade finance.
Speaking on how this collaboration is set to revolutionize the Southeast Asia remittance industry, Matthew Alexander, SEBA Bank’s head of tokenization said,
“We are delighted to forge this partnership with Lightnet Group and be part of the vibrant fintech landscape that Southeast Asia represents. Asia is a promising market not only because of its size but especially because of the affinity of the people towards digital services and digital assets.”
Striving to transform the payment sector
This news comes after Lightnet secured £23.8 earlier this year in its Series A funding round. The funding round attracted leading VC firms such as UOB Venture Management, Signum Capital, Seven Bank, Hopeshine Ventures, Uni-President Asset, and HashKey Capital. Reportedly intended to use these funds to develop a payment network that runs on the Stellar blockchain.
