Roxe is a Fast, Secure and Reliable Way for Banks to Clear and Settle Remittances and Payments in Seconds Instead of Days
Apifiny, a San Francisco-based global value transfer network, announced the official debut of Roxe, the first settlement network designed to enable instant global clearing and settlement of payments and remittances, traditional assets, and digital assets. Roxe will save financial institutions significant time and costs by using blockchain technology to provide highly reliable, secure and real-time clearing and cross-border settlement across the world.
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“As Amazon restructured the U.S. retail industry, the time has arrived for a platform like Roxe, Apifiny to restructure global asset transfers and help the world’s major banks and financial institutions transfer value much faster and more reliably while saving significant costs.”
Today’s international payment settlement systems are too slow and complicated. Since each fiat currency has a unique cross-border payment settlement system, international remittance can only be achieved through multiple steps by agency banks located in different countries. For example, the USD cross-border payment settlement system uses CHIPS, the Euro uses EURO1, the Japanese Yen uses FXYCS, and the Renminbi (RMB) uses CIPS. As a result, most international remittances still take three to five days to clear and settle.
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Existing cross-border payment settlement systems are also too costly. It costs an average of $25 to $35 USD for a U.S. bank to make a cross-border remittance through an agency bank, more than 10 times the cost for an average domestic ACH payment (source: McKinsey & Company, 2016). That cost breaks down as follows:
- 34 percent of the remittance cost is for nostro-vostro liquidity (the cost of banks holding accounts with other banks)
- 27 percent is for treasury operations
- 15 percent is for foreign exchange operations
- 13 percent is for compliance
- 11 percent is for miscellaneous other factors
By adopting blockchain solutions, the global banking industry could save as much as $20 billion by 2022, according to the management consulting firm Accenture.
“Roxe’s mission is to create an unprecedented global value network, one that accelerates value transfer on par with how information is instantly transferred over the Internet,” said Haohan Xu, CEO of Apifiny. “As Amazon restructured the U.S. retail industry, the time has arrived for a platform like Roxe to restructure global asset transfers and help the world’s major banks and financial institutions transfer value much faster and more reliably while saving significant costs.”
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