Singapore Dragonfly Fintech (DF), clinched a deal today to power Metro Money Exchange, a Malaysian licensed wholesale and money remittance company using the NEM's Blockchain Technology.
The payment and settlement solution will be implemented in partnership with BC Fintech Sdn Bhd, a Dragonfly system integrator.
The solution will drive the entire remittance chain, from wholesale foreign exchange to the receipt of fiat money at the recipient's end. The remittance market in Malaysia is about $10 billion per annum.
"It is about transforming the money remittance space and repositioning the service as a platform business allowing near frictionless participation," said Lon Wong, CEO, Dragonfly Fintech.
This solution is also applicable to banks, and they are very positive about this solution. Banks are meticulously working through their processes to ensure stakeholder concerns and needs are addressed before embarking on such a project. Dragonfly will continue to work closely with its clients in supporting their decision-making needs.
While working through the decision-making process with banks, Dragonfly is also taking a parallel approach by powering money remittance companies. Later, this can be integrated with other financial institutions into a huge ecosystem. The use of Dragonfly's platform will ensure compliance to regulatory requirements with a more robust approach in security, efficiency, cost, and most importantly, introducing a paradigm shift in providing services.
The solution platform does not infringe into the traditional regulatory requirements such as compliance, governance, AML, and KYC. They are still very much the responsibility of the licensed entity and is business as usual. What the platform solution provides is an enablement for the licensed entity to manage all its individual customers' transactions, leaving the licensed entity to manage the wholesale forex and treasury function separately.
The solution also allows each licensed entity to operate its services in an independent private chain. At an opportune time, these entities can opt into the ecosystem while still having the autonomy.
"We have been ahead of the pack and painstakingly designed this solution for the last 3 years. With a proven solution, we are able to demonstrate a world's first in setting the standards right, i.e., establish one's autonomous private chain and then integrate with the larger, massive network of financial institutions, transacting potentially hundreds of thousands of Tx/s at the system level, all on the blockchain while maintaining independence. This remittance service is only one part of a spectrum of solutions Dragonfly is providing, which includes enabling a country to issue its own sovereign digital money," Wong said.
The impact of the services will include meaningful reduction in transaction cost, faster transactions, complete audit trail, and reconciliation of balances, thereby providing an alternative to current de facto messaging method.
At some point in time, this service will be extended downstream to include mobile payments, debit card functionality, as well as ATM functionality. This is made possible because of the ubiquity and expansiveness of the platform solution. Driven by a core blockchain solution, Dragonfly's offer is an ecosystem for the financial system, from central banks to the consumer, coupling them seamlessly, and directly.