Vaulta, a scalable operating system for Web3 banking, this week announced a strategic partnership with Virgo, a digital asset service provider, to launch VirgoPay, a dedicated cross-border remittance network that uses stablecoins to both reduce transfer fees and decrease transfer times for international wire transfers and payments.
The partnership will make Vaulta the default transaction and settlement layer for VirgoPay, which is set to launch in May and become a critical part of Vaulta’s Web3 Banking vision. VirgoPay will benefit from the near-instant finality of the Vaulta blockchain, ensuring the security, speed, and reliability of the payment network surpasses that of more traditional payment rail experiences.
“In addition to being very costly and slow, cross-border payments have always relied on access to traditional banks or financial institutions, which often isn’t an option in areas that lack that necessary and widely available infrastructure,” said Yves La Rose, founder and CEO of Vaulta Foundation. “Virgo is tackling this problem head-on by leveraging the power of stablecoins, while also acting as the first true proof-of-concept for our chain’s new focus around the evolution of finance. The VirgoPay network stands as the first testament to the Vaulta Banking OS framework our team has perfected over years of iterations, and is step one in realizing our vision for Web3 Banking.”
The VirgoPay service will allow users to add funds using traditional local payment rails, such as bank transfers, e-transfers and card processing, or directly from a crypto wallet, and enables users to select from a range of fiat currencies. Once initialized, users can track the status of their payment in real-time, with recipients able to access funds using their preferred currency once the transaction is complete.
This approach is designed to reduce cross-border transaction fees by up to 70%, while also allowing for transactions to occur in minutes as opposed to several days with traditional remittance services. Additionally, leveraging stablecoins provides users with protection against fluctuations in local currency value alongside additional security and transparency afforded by the use of blockchain technology.
“Vaulta’s vision about Web3 banking is aligned very well with Virgo’s vision to make crypto great for all,” Virgo CEO Adam Cai said. “Leveraging stablecoins for payments is going to be the first killer application for DLT. VirgoPay is thrilled to partner with Vaulta to achieve its’ global mission to make money flow freely and easily.”
The first phase of the VirgoPay launch will establish connections across multiple global financial hubs, including U.S., Hong Kong, Canada, Argentina, Brazil and Australia. Phase 2 will expand the VirgoPay network into other countries in South America , Southeast Asia, and the Middle East, seeking to capitalize on the growing remittance market that is projected to reach north of $1 trillion by 2029.