Prove and Velocity Tackle Stablecoin's Billion-Dollar Trust Problem

NEW YORK, NY – May 14, 2026 – Digital identity leader Prove and enterprise payments platform Velocity have announced a partnership aimed at dismantling one of the most significant barriers to the mainstream adoption of stablecoins: a persistent and costly 'trust gap.' By integrating Prove's extensive identity verification network with Velocity's treasury platform, the collaboration seeks to provide the security and compliance that global corporations and financial institutions demand before fully embracing digital assets for payments and settlements.

As stablecoins have evolved from a niche crypto-asset into a promising tool for enterprise finance, the technology for moving money has far outpaced the systems for verifying the people and entities moving it. This partnership directly targets that disparity, combining Velocity's infrastructure for stablecoin-based payments with Prove's capacity to verify approximately 90% of the world's digitally active population. The goal is to make stablecoin transactions as trusted and secure as those in traditional finance.

"Stablecoins have fundamentally changed enterprise finance by delivering faster, more programmable, and borderless value transfer," said Fernando Castellanos, Global Head of Digital Assets and Sponsor Banks at Prove, in the announcement. "But while the movement of money has evolved, identity has not kept pace, and that trust gap remains one of the most significant barriers to enterprise adoption."

The High-Stakes 'Trust Gap' in Digital Finance

The promise of stablecoins—instant, global transactions at a fraction of the cost—has long been compelling for CFOs and corporate treasurers. However, the operational reality has been fraught with risk. The speed that makes stablecoins efficient also makes them a potent vehicle for fraud, money laundering, and account takeovers. Illicit activity within the broader digital asset space reached an estimated $40 billion in 2023, a figure that has made risk and compliance departments justifiably cautious.

Enterprises have hesitated to dive in, not for a lack of interest, but for a lack of infrastructure that can provide continuous, robust identity verification. Traditional, one-time KYC checks at onboarding are insufficient for the high-velocity, borderless nature of stablecoin transactions. This has created a critical need for solutions that can confirm identity not just at the beginning of a relationship, but at every critical point within a transaction's lifecycle.

"We want CFOs to be able to make money move like the internet: instant, global, and flexible," stated Eric Queathem, Founder and CEO of Velocity. "But speed without trust creates risk. Partnering with Prove means we can walk into any enterprise conversation knowing we have the identity layer covered."

A New Regulatory Dawn Demands Compliance

The timing of the partnership is no coincidence. It aligns with a wave of new regulatory clarity that is transforming the digital asset landscape from a Wild West into a structured financial sector. In the United States, the passage of the "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act" in July 2025 created the first comprehensive federal framework for payment stablecoins.

Crucially, the GENIUS Act classifies stablecoin issuers as financial institutions under the Bank Secrecy Act, making stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) controls mandatory. This regulatory shift, mirrored by the European Union's Markets in Crypto-Assets (MiCA) regulation, has turned robust identity verification from a best practice into a legal necessity. For enterprises to use stablecoins, every transaction must be compliant, and every counterparty must be verified.

This new reality has fueled a surge in demand from the partnership's core target segments: banks building out digital asset services, payment companies developing stablecoin corridors, and multinational corporations seeking programmable treasury solutions. Recent reports indicate that major U.S. banks are already running pilot programs for stablecoin payments, while payment giants like Visa have launched their own initiatives using stablecoins for cross-border settlement. These institutions are actively seeking the exact type of integrated payment and identity solution that Prove and Velocity aim to provide.

Bridging Identity and Payments for Global Enterprise

The joint solution marries two distinct but complementary technologies. Velocity provides the enterprise-first platform that allows CFOs and treasurers to manage capital across banks, blockchains, and borders through a single interface. It is designed to integrate with existing financial systems, removing the friction often associated with adopting blockchain technology.

Prove brings its 'Prove Identity Graph' to the table, a sophisticated network that connects tokenized, privacy-preserving representations of a person's identity attributes. This allows for real-time verification that goes beyond a simple name and address check, incorporating device reputation, phone number tenure, and other dynamic signals to confirm that the person transacting is who they claim to be, right at that moment.

Together, the companies will offer a unified path for enterprises to deploy stablecoin payment systems that have identity assurance baked in from the start. This addresses the dual needs of the corporate treasurer, who demands efficiency, and the chief risk officer, who requires compliance and security. The partnership offers a coordinated engagement that tackles both the payment infrastructure and identity requirements simultaneously, significantly streamlining the adoption process for large organizations.

By focusing on trust as the foundational layer, Prove and Velocity are betting that the next phase of the stablecoin economy will be won not on speed or yield alone, but on reliability and security. Their collaboration represents a critical step in building the secure rails needed for digital assets to integrate fully into the machinery of global finance, enabling capital to move with confidence in a new digital era.