VeChain has made a significant move in its quest to secure partnerships with major central banks worldwide. Earlier this year, the VeChain Foundation filed an application for the V3TR trademark, which covers the electronic transfer of digital currencies via devices and communication networks. This trademark not only positions VeChain as a potential partner for central banks but also caters to existing digital currencies and any future tokens in the booming tokenisation era.
If successful, VeChain could become the first global blockchain network to form partnerships with key central banks globally. The patent application was filed with the US Patents and Trademark Office (USPTO), as reported by Crypto News Flash. This pending trademark has the potential to revolutionize various aspects of the crypto and digital token industry, including digital currency transfers, crypto trading, ISO 20022 compliance, and the trillion-dollar payments market.
The V3TR trademark enables VeChain to offer diverse services, such as the issuance and redemption of digital tokens, token exchange services supported by blockchain technology, and electronic fund transfers. Additionally, the trademark caters to the issuance of digital tokens for community memberships in online forums, making VeChain the go-to platform for both financial transactions and social interactions.
While the V3TR trademark has broad applications, its primary target is the payments industry. With a projected worth of $20 trillion in the next two years, this industry is currently dominated by legacy banking institutions and financial technology firms. In China, for example, WeChat Pay and Alipay control a staggering 92% of the digital payments market. Similar dynamics can be observed in other markets, where a few companies hold a monopoly.
What sets VeChain apart is its utilization of blockchain technology. None of the dominant players in the payments industry are built on blockchain. With V3TR, VeChain aims to become the first blockchain-based platform offering an easy-to-use, intuitive, fast, and cost-effective payment method.
In the long run, VeChain aspires to become the preferred platform for all payments market partners. The sector naturally gravitates towards the most efficient solution with a significant network effect. This was evident when SWIFT, the messaging system for banks, was launched in 1973 and quickly became the industry standard due to its user-friendly interface, speed, affordability, and support from multiple banks.
Central banks have a responsibility to ensure the smooth functioning of their countries’ monetary systems and guarantee access to banking services for their citizens. If VeChain proves to be one of the platforms offering the best solutions, central banks will be inclined to partner with VeChain and build solutions on its blockchain. VeChain has already forged partnerships with banks in the past, such as China’s leading SME financier, Fanghuwang.
Currently, VeChain’s native token, VET, is trading at $0.03373. While it has remained relatively stable in the past day, it has experienced a 4% decline over the past week. Unlike its peers Fantom and Graph, which have seen significant gains of over 65% this year, VET has dropped 2.4% year-to-date.
In conclusion, VeChain’s V3TR trademark application has the potential to reshape the landscape of digital currencies, tokenisation, and the payments industry. With the possibility of forming partnerships with major central banks globally, VeChain is positioning itself as a frontrunner in the blockchain space and a catalyst for innovation in the financial sector.