Singapore-based fintech company Chynge is set to launch a decentralised remittance platform to enable instant cross-border payments.
With a public token sale slated to be introduced this month, the service is expected to go for a commercial launch by the end fourth quarter of this year.
The new solution requires the sender to place the tender amount onto the Chynge remittance platform. This tender amount is converted into XCLP tokens to be transmitted to the recipient country, where again they are converted to the local currency to enable collection.
These tokens are recorded on the distributed ledger before transmission.
The whole process utilises blockchain technology at the backend ensuring a smooth payment process between the customers.
Chynge has already opened bank accounts in the markets with adequate local currency to process these transactions. It will also help to reduce time and cost associated with the process as well as eliminates the effects of currency depreciation.
Furthermore, the company deploys a ‘Smart Compliance’ method which uses Artificial Intelligence and Machine Learning to develop detailed user profiles and the corresponding history of their transactions providing unique risk rating to each one of them.
Accordingly, the system can help to detect attempts of money laundering, terrorist financing and other financial crimes.
Overall, the service is expected to eliminate the hindrance of cross-border money transfers including transaction fees, time and inconvenience.
Chynge founder and CEO Joe Tusin said: “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.”