Blockchain Remittance Platform Announced By FinTech Startup Chyngebr>
Singapore-based FinTech startup Chynge will be launching a blockchain remittance platform that will allow users to make instant and free money transfers across borders.
Chynge provides money changing and international money remittance services. It currently offers Chynge Money, a social discovery platform that allows users to change money directly with each other or with licensed money changers, and Chynge Pay, which automates the end-to-end business process of international money remittance.
The new remittance platform, called Chynge Central, will be powered by Chynge’s distributed ledger system, which is backed by the Stellar blockchain protocol, and its own XCLP token. The platform will allow user to convert any amount of legal tender they want to send overseas to XCLP tokens. The tokens are then converted into the local currency of the recipient, which is then collected.
The company said it has opened bank accounts in all the target destination markets containing local currency, ensuring sufficient liquidity to facilitate transactions. This system allows for funds to remain within the countries and eliminates extra cost and time when transmitting funds from country to country. This method also removes the risk of currency depreciation.
The platform utilizes a “Smart Compliance” method which uses artificial intelligence (AI) and machine learning to develop detailed user profiles and the corresponding history of their transactions.
“The system monitors for several aspects such as money laundering, terrorism financing, and other financial crimes, and generates a risk rating for each user, and the system is able to refresh itself with updated information to make even more accurate decisions over time,” the company said.
Chynge will be launching its public initial coin offering (ICO) on June 28, with its platform slated to be ready by the fourth quarter of this year.
“Digital technology has allowed us to accelerate the growth towards financial inclusion for everyone in the world,” said Chynge founder and CEO Joe Tusin. “A cumbersome remittance service with extra costs affects people in developing countries most severely. What we aim to do with this service is to make the transmission of funds secure, instant, and fee-less. We believe that this will democratise and socialise money, taking power away from the institutions and giving it back to the people. Money saved can be ploughed back to their families and communities raise their standard of living.”