Zug, 25 August 2020 – SEBA Bank, a FINMA licensed Swiss Bank that provides a seamless, secure and easy-to-use bridge between digital and traditional assets, has signed a Memorandum of Understanding with Lightnet Pte. Ltd., a Singapore-based fintech company.
With the MoU in effect, SEBA Bank will serve as the banking counterparty for the Lightnet Group, enabling settlements, correspondences, and remittances uniquely in both fiat and digital currencies. SEBA Bank will also act as an alternative settlement banking network, account and custodian as well as the settlement bank for money transfer operators (MTOs) in digital currencies.
After the Banque de France chose SEBA Bank for experiments with Central Bank Digital Currency a month ago, this new collaboration shows the acknowledged expert status of SEBA Bank internationally. By providing Lightnet Group with high-quality services, SEBA Bank showcases its pioneering role in the world of digital banking solutions for the new economy.
Together with Lightnet Group, SEBA Bank will provide remittance services across Southeast Asia for millions of unbanked migrant workers. This will allow a bypassing of the global remittance industry – a trillion USD market characterised by high transaction fees, fragmentation and unreliable payment routes – conversely providing lower fees, faster transactions and broader coverage.
Guido Bühler, CEO SEBA Bank, states “Asset Tokenization is an important pillar of SEBA Bank – the combination of Asia and stable coin is a fantastic constellation. We are proud to help offering remittance services to millions of people who are cut-off from the traditional banking system. This is a big step towards the future of banking.”
"The partnership with SEBA has significantly enhanced the efficiency and interoperability of settlements between digital currency and the real world,” comments Chatchaval Jiaravanon, Co-founder and Chairman of Lightnet Group. “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.”
Lightnet Group uses the Velo Protocol, a blockchain financial protocol developed by Velo Labs to offer its remittance services. Velo Labs, backed by ten leading Asian conglomerates, is the first decentralized credit and settlement network in Asia and one of the first “Federated Financial Networks” to bridge digital and real-world settlement. Lightnet Group will be able to offer its services without the users having to directly interact with the Velo Protocol or VELO tokens.
Matthew Alexander, Head of Asset Tokenization of SEBA Bank, comments: “We are delighted to forge this partnership with Lightnet Group to provide a Digital Payments & Treasury solution 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.”
About Lightnet Group
Lightnet Pte. Ltd. is a Singapore-headquartered fintech company with the purpose of empowering underbanked populations and SME trade finance with an inclusive international remittance ecosystem. The Lightnet Group adopts Velo 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. The Lightnet Group’s initial focus will be on Southeast Asia remittances which it estimates to be in excess of USDbn 150 per annum.