PYMNTS.com recently reported on easing banks into a cross-border payments paradigm shift, based largely on its interview with Apifiny CEO, Haohan Xu.
The article explores the challenges with the traditional correspondent banking model, with friction and expense introduced by multiple intermediaries — too many cooks in the kitchen. Transactions are slow, costly, and lack transparency.
The article goes on to discuss innovative solutions to these issues, including blockchain technology as “an increasingly attractive technology to operate as an entirely new rail to move money across borders.” It goes on to describe how the launch of Roxe Instant Global Settlement Network to facilitate real-time clearing and settlement of cross-border transactions.
The article posits why the time is now for the global payments ecosystem to begin shifting from an account-based paradigm to a token-based one — and how Apifiny plans to overcome the challenging inertia of legacy infrastructure that prevents so many financial institutions from embracing innovation.
Highlights Include insights into the problems banks face:
- The hurdles of clearing and settlement with each currency relying on its own real-time gross settlement (RTGS) system
- The costs of holding reserves in multiple currencies across institutions
- The lack of visibility into the status of payments as money moves throughout the correspondent banking chain
The article goes on to explain how Apifiny’s blockchain-based Roxe Global Instant Settlement Network aims to deliver real-time cross-border settlement for the U.S. dollar (USD) and for digital currencies. Mr. Xu goes on to explain the challenges to adoption, and the importance of Apifiny’s unique approach to reducing barriers to adoption.