Cross-border payments are inefficient because there is no ubiquitous global system; users operate on different platforms known as correspondent banking.
Regardless of what happens at the front, almost all cross-border payments are ultimately settled on legacy banking infrastructure at the back.
This means that whether it’s a traditional bank remittance or a FinTech wallet transfer, settlement happens in the same manner in the background.
This problem is exacerbated by the declining trend of correspondent banking relationships globally even as cross-border activity increases, leading to higher costs of cross-border payments.
This needs to change. But how?
To achieve the same level of efficiency as local payments, cross-border markets need to be connected on a unified ecosystem yet allow each user to retain autonomy over their data, internal processes, and adherence to local regulatory requirements. This is only possible with a decentralised solution since international markets are decentralised by nature.
Together with R3 and Intel, we leverage on confidential computing to aggregate all cross-border transactions in a secure enclave on a decentralised basis. This means that data can be processed without being accessed by anyone, not even by us. This provides a complete view of the entire market to achieve the most efficient prices possible. Our decentralised netting technology saves FX participants 96% of their cross-border fees while shortening the payment duration.
R3 is an enterprise software firm that is pioneering digital industry transformation. Its proprietary platform Corda is digitalising the processes and systems that firms rely on to connect and transact with each other and has more than 350 institutions deploying, servicing and building on it.
R3 has also brought together over 140 regulators, central banks, commercial banks, exchanges, technology and payments companies to focus on the technology, policy and impact of digital currencies issued by a central bank (CBDC), including Project Ubin by the Monetary Authority of Singapore and Project Jasper by the Bank of Canada.
The OneHypernet team brings decades of experience from founding several of the largest money service businesses in Asia since 1990, including Thin Margin, the first and largest online money-changer in Singapore, and a winner of the 2018 MAS FinTech Awards.
OneHypernet has also been awarded the Monetary Authority of Singapore’s Financial Sector Technology and Innovation (FSTI) Proof of Concept (POC) grant for our decentralised multilateral netting solution.