Multilateral netting solution
Challenge
- Cross-border transactions do not have a trusted central intermediary and must use correspondent banking to perform the transfer on the sender’s behalf
- Each intermediary that touches the payment adds cost and additional pre-funding requirements
- Money Transfer Operators (MTO) offset this by settling on a multilateral basis – but this process requires a single entity to act as the central authority to receive all payments and calculate the netting instructions for settlement
Solution
- OneHypernet’s decentralized multilateral netting solution confidentially aggregates and computes cross-border transactions in a secure environment
- Each transaction is processed fast and securely using a distributed netting pool, with known identities and data shared on a need-to-know basis
- Why Corda? OneHypernet chose Corda because it enables users to transact peer-to-peer in a permissioned network and Conclave because it enables them to pool and compute sensitive data without the need for a centralized party
Results
- 96% reduction in cross-border liquidity requirements
- Data sharing and transaction settlement with hardware-based confidentiality
- Decentralized cross-border transactions match the speed of domestic ones
