The Lightnet Group, a Singapore-based fintech company, has secured a US$50 million capital commitment from LDA Capital, a US-based alternative investment group with expertise in cross-border transactions globally.
The funds will be utilised to facilitate Web3 payment and blockchain ledger-based remittance services across the Asia Pacific and globally.
Lightnet Group will also build a CeDeFi (centralised, decentralised finance) banking network through its licensed subsidiaries in Asia.
The group will have the option to extend the capital to up to US$100 million over the next three years.
With a mission to promote financial mobility and inclusivity, Lightnet Group empowers unbanked populations and SME trade finance with an inclusive international remittance ecosystem. The ecosystem adopts the Velo Protocol (from Velo Labs) as its blockchain transaction documentation protocol in parallel to existing and traditional documentation and process.
Also Read: How Web3 will revolutionise borderless banking in Southeast Asia
Velo Protocol is a company focused on building plug-and-play, blockchain-based remittance solutions. This project intends to be a real-time blockchain settlement flow for remittance and payments between money transfer operators (MTOs) and banking institutions under regulatory supervision and support.
With the assistance of Velo Labs, Lightnet will be able to connect to many payment partners across the globe. It makes the remittance ecosystem and payment options more affordable and accessible to businesses and customers alike.
The fintech firm also intends to utilise part of the funds to develop Velo Lab’s existing technology, and contribute to the growth of Velo anchors, and remittance partners and liquidity providers.
“Lightnet’s next generation financial infrastructure, along with Velo Labs’s disruptive technology, will be the future rails for dynamic and regulated markets providing financial mobility and inclusivity across Asia,” said Warren P. Baker III, Managing Partner and Co-Founder at LDA Capital.
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