Introduction: In today's rapidly changing fintech landscape, innovative collaboration is continuously driving the payment industry towards greater efficiency and convenience. As early as 2020, the blockchain protocol Velo announced a strategic partnership with global payment giant Visa. This collaboration is not only symbolically significant but is also considered an important step in leading the emerging PayFi (Payment Finance) ecosystem.

I. Background of the Cooperation


Velo is a cross-border payment solution provider based on blockchain technology, dedicated to improving the efficiency and transparency of cross-border fund transfers through decentralized finance (DeFi) technology. Visa, as a global leader in payment network operations, possesses unparalleled payment infrastructure and market coverage.

II. Significance of the Strategic Cooperation

Promoting the Upgrade of Cross-Border Payments
Traditional cross-border payments often face high fees and long processing times. By integrating Velo's blockchain technology with Visa's payment network, users can complete cross-border fund transfers at lower costs and higher speeds.

Accelerating the Development of Payment Finance (PayFi)
PayFi, as an emerging financial model, aims to innovate payment methods through fintech. This partnership undoubtedly lays a solid foundation for the widespread application of PayFi, enhancing the popularity of digital payments.

Enhancing Financial Inclusion
For many developing countries and regions, accessibility to financial services remains low. Through this partnership, Velo and Visa will be able to provide more payment and financial service options for these areas, further narrowing the global financial gap.

Real-Time Settlement Capability
With the help of blockchain technology, cross-border payments will achieve near real-time settlement, significantly reducing the clearing time of traditional payments.

III. Expanded Cooperation and Vision

RWA Partnership
Velo has demonstrated its commitment to projects related to real-world assets (RWA), including PTLH in Laos, Openeden, and Securitize related to BlackRock. These collaborations highlight Velo's goal of connecting blockchain with physical assets.

Multi-Chain Operational Capability
Velo operates on multiple blockchains, including BSC, TON, Solana, and Stellar, and its architecture is designed for scalability and interoperability, promoting broader adoption.

Real-World Application Scenarios
Through innovative products like Omni Point, Velo showcases the Omni Point program of the Orbit collaboration, painting a brilliant prospect for the adoption of Web3 in the real world. Velo integrates blockchain technology into everyday financial activities, highlighting its potential in PayFi solutions.


IV. Conclusion


The strategic partnership between Velo and Visa is undoubtedly a win-win situation that will not only enhance the efficiency of existing payment systems but also accelerate the development of the fintech industry, bringing more convenience to global users. Combining RWA collaboration, multi-chain operational capabilities, and real-world application scenarios, Velo is building a powerful ecosystem that spans both on-chain and off-chain. As technology continues to advance and collaborations deepen, we look forward to the PayFi ecosystem becoming the core driving force in the future payment landscape, making global payments smarter and more inclusive.