Partior CEO Humphrey Valenbreder
With the global cross-border payment market experiencing explosive growth, moving money across multiple currencies is getting increasingly complex and costly. Financial institutions and their end customers also face operational inefficiencies stemming from legacy market infrastructure, such as settlement risk at each transaction phase and uncertainties related to settlement confirmation and liquidity accessibility.
A Singaporean startup addresses these problems with blockchain technology.
And it has just raised a large sum of investment from prominent global investors.
Also Read: AI will have more impact on our future than blockchain: Dusan Stojanovic
“Traditional cross-border payments are fraught with delays, high costs, lack of transparency, multiple intermediaries, and varying compliance standards,” Humphrey Valenbreder, Partior CEO, told e27. “At Partior, we address these issues with our 24×7 global clearing and settlement solution, which facilitates real-time domestic and cross-border payments across banks, ensuring programmable value transfers with real-time settlement finality. This approach delivers instant liquidity and transparency, effectively overcoming the inefficiencies inherent in legacy payment systems.”
“Similarly, FX Payment vs Payment (PvP) arrangements for post-trade FX settlements today suffer from inefficiencies due to rigid settlement cycles and lack of support for emerging market currencies, leading to delays and settlement risk. Our decentralised global FX settlements solution enables real-time post-trade settlement for FX trades with PvP arrangements for both primary and emerging market currencies. This eliminates settlement risk and allows instant access to liquidity when required, eliminating delays and rigid settlement cycles,” he shared.
Leveraging distributed ledger technology (DLT), Partior combines tokenised deposits and assets into a single programmable platform to ensure transparency, liquidity, and settlement finality.
“As for transparency, Partior employs a permissioned ledger system, ensuring that only authorised participants have access. This approach guarantees real-time visibility across the entire payment chain, enhancing transparency from initiation to settlement. With regard to liquidity, Partior’s 24×7 availability allows for continuous payment and settlement processing and extends operational hours beyond traditional cut-offs. As a result, funds can be moved almost instantaneously across borders and time zones, enhancing liquidity management efficiency.
When it comes to settlement finality, DLT within Partior ensures on-chain settlement finality and eliminates the need for lengthy reconciliation processes while reducing settlement risks associated with traditional systems,” Valenbreder elaborated.
Partior also offers innovative capabilities for settlement efficiency, such as Intraday FX swaps, Programmable enterprise liquidity management, and Just-in-time (JIT) multi-bank payments.
The Intraday FX Swaps capability enables banks to execute and settle transactions within shorter time frames, ranging from hours to minutes. Banks can address their immediate liquidity needs, optimise capital utilisation and capture new revenue opportunities through funds that would otherwise be tied up as collateral for pre-funding requirements.
At the same time, the programmable multi-bank, multi-country cash concentration across multiple banks and countries helps corporates optimise their group cash balances. By automating cash management processes, corporates can deploy funds more strategically, improving control of liquidity and cash flows.
On the other hand, the JIT Multi-Bank Payments solution allows large corporates and multinational corporations with global treasury operations to consolidate cash and efficiently manage payments to overseas subsidiaries. By facilitating immediate fund transfers upon payment initiation, JIT payments enhance operational efficiency and reduce the complexity of cash forecasting and funding across diverse banking relationships and markets.
Partior’s concurrent payments pre-validation enables payment information to be checked and validated before funds transfer. This helps to prevent errors and optimise liquidity usage.
Last week, Partior announced the first close of its US$60 million+ Series B funding round, which was led by Peak XV Partners and participated in by Valor Capital Group, Jump Trading Group, J.P. Morgan, Standard Chartered, and Temasek. The funding will accelerate the development of new capabilities such as Intraday FX swaps, Programmable Enterprise Liquidity Management, and Just-in-Time multi-bank payments.
“We will also focus on expanding our geographical reach through the growth of our international network by integrating additional currencies, including AED, AUD, CAD, CNH, GBP, JPY, MYR, QAR, and SAR, to complement USD, EUR, and SGD, which are currently live on the Partior platform,” he added.
Also Read: Evaluating the spread of blockchain technology in the financial sector
“The involvement of Peak XV, Jump Trading Group, and Valor Capital Group also enhances our reach and influence in key markets, complementing the global presence established by our existing investors,” Valenbreder said.
By leveraging blockchain technology, Partior is poised to redefine the landscape of cross-border payments. With its focus on real-time settlement, transparency, and cost-efficiency, the company is addressing the critical pain points that have long plagued the industry. The recent infusion of capital underscores the immense potential of Partior’s solution and its ability to transform the way money moves across borders. As Partior expands its network and introduces new capabilities, it is well-positioned to become a leading player in the global payments ecosystem.
—
The post How Partior leverages blockchain to offer faster, cheaper cross-border payments appeared first on e27.