Singapore-based fintech company Lightnet has secured $50m from the investment group LDA Capital to expand its operations, infrastructure, and Velo Labs Technology’s blockchain technology.
The funding is said to be used to support web 3.0 payment and blockchain-based remittance services with a focus across the Asia Pacific and globally.
The capital commitment from LDA is expected to expand internal operations, including the hiring of personnel from all over the world to support the growth of Lightnet’s ecosystem.
In addition, Lightnet plans to use a portion of the funds to advance Velo Lab’s current technology, support the expansion of Velo anchors, remittance partners, and liquidity providers, and help the blockchain start-up by strengthening its team through the hiring of key management officials and developers.
Lightnet co-founder and CEO Tridbodi Arunanondchai said: “We’re thrilled with this partnership and are so glad that LDA Capital recognises the value of the new generation remittance services.
“This investment will allow us to grow and expand our infrastructure, which partners can participate in and grow business solutions. Our unique architecture makes the solution accessible and attainable for anyone to adopt the service.”
Over the next three years, Lightnet is said to have the option to increase the $50m commitment to a maximum of $100m.
LDA Capital managing partner and co-founder Warren Baker said: “Lightnet’s next generation financial infrastructure, along with Velo Labs’ disruptive technology, will be the future rails for dynamic and regulated markets providing financial mobility and inclusivity across Asia.”
The investment will enable a transition of current payment and remittance systems towards new technology, and create the #1 CeDefi banking network in Asia through its licenced subsidiaries, claims the Lightnet group.
The company plans to test out programmes that would enable remittance backed by distributed ledger technology through a variety of channels, including the use of stablecoins, bypassing the standard SWIFT settlement procedure.
It is said to lower the high pre-funding costs that currently characterise traditional cross-border payment flows.