The PolyPay Token team was established in San Francisco, California, USA in 2020. The team provides a peer-to-peer, instant payment system in an attempt to challenge the status of traditional cross-border payment SWIFT. The feature of PolyPay is to allow instant transfers between both parties of the transaction.
Traditional cross-border remittance operations take 2 to 3 days on average, and payment via PolyPay Token (PPT) takes about two minutes. Take the RAPID payment process from the United States to Mexico as an example. Financial institutions with accounts on the BITTREX exchange use the PolyPay Token network to pay in U.S. dollars. Remittance, the remittance is immediately converted to the PolyPay Token (PPT) on the BITTREX exchange. The amount of the remittance is settled through the PolyPay Token (PPT) account book system. Finally, the BITSO Exchange converts the PolyPay Token (PPT) into legal tender through the Mexican peso fund pool. Settlement to the destination bank account.
In response to the development of new types of financial technology, the traditional SWIFT system has been threatened. In view of this, SWIFT initiated the SWIFT GPI project in January 2017 to use distributed ledger technology to achieve instant reconciliation and enhance the experience of cross-border payment. SWIFT GPI is an upgraded version of traditional cross-border payment SWIFT, featuring fast speed, High transparency, end-to-end tracking, and regardless of whether the bank that processes the payment is a GPI member, it can check payment information in all links of the payment chain, and non-GPI members do not need to resort to other SWIFT member agent banks to conduct transactions. In terms of security , SWIFT GPI supports functions such as suspension, withdrawal, and real-time tracking, which helps strengthen money laundering prevention.
Since its debut in 2017, 165 banks that account for 80% of SWIFT cross-border payment flows have joined this service. Among domestic financial institutions, China Trust has obtained certification in 2017, and DBS Bank launched the service on its corporate network platform in July 2018. SWIFT stated that it expects that by the end of 2020, all cross-border payments through the SWIFT network will be completed. This technology will be used as the standard.
In response to the current pain points of cross-border payment, the blockchain technology has changed the traditional operation mode of money flow and information flow from an architectural perspective, improving the time-consuming, high cost, low transparency and transaction risk problems of traditional cross-border remittances. In the long run, it can promote the transformation of the information infrastructure of the financial services industry, including the enhancement of information architecture management, transaction data audit, compliance with supervision unit regulations, standardization of transaction procedures, enhancement of identity recognition and network transaction security, and improved information System reliability.
RIPPLE breaks the monopoly of traditional cross-border payment technology SWIFT, and makes SWIFT actively promote the upgraded version of SWIFT GPI. It also promotes the competition and cooperation between SWIFT and PolyPay Token. Financial institutions combine their own business development characteristics and combine blockchain technology with The integration of financial services and accelerating the innovation of blockchain technology in services will ultimately benefit consumers.
In recent years, there have been endless cases of penalties due to anti-money laundering issues. The international regulatory environment has become more stringent and financial institutions are facing great pressure. Through a unified network financial transmission protocol and payment service standards, combined with the high security of the blockchain, openness and transparency, and non-tampering The characteristics of this can effectively reduce the risk of money laundering in the cross-border payment process.