Adding to the fast-developing ecosystem of businesses looking to leverage blockchain technology with remittances, Canadian startup ZED Network today said its plans to unveil a global payment platform built on top of a proprietary blockchain technology.
In a release announcing the news, the Ontario-based company touted the speed and efficiency of using ZED cryptocurrency for remittances.
The remittance industry, which hovers around $600 billion per year, is observed as one of the ripest for disruption given the high costs that currently exist within traditional remittances.
ZED Network will seek to develop a platform-as-a-service solution that benefits from the increased efficiency of Stellar network, as well as bitcoin and ether as methods of payment. Stellar’s transactions take only two to five seconds and allows users to quickly exchange fiat currencies, through a native token called lumens or XLM.
ZED’s remittance offering will integrate a comprehensive set of products including those that stand to benefit from a lower fee-based structure compared to current models. Specifically, the startup’s solution will feature a digital wallet, web app, mobile app, facility to exchange multiple currency pairs, and a back office with analytics and reporting tools for compliance and monitoring.
Lower fees associated with this technology may provide more room for disruption in the current high-cost models many banks and financial institutions uphold.
Also a digital token
Centered around the concept of creating digitized versions of fiat currencies that can be exchanged and transferred between different parties, ZED platform will create its native token that will react within the platform. The significance of ZED tokens is that merchants and consumers will be able use it to transfer money in near real-time, accelerating a payments process that typically takes days.
The news comes as an additional validation of blockchain technology, which has long promised enormous efficiencies for the remittances sector, and has already gathered pace to move from the concept stage to the real world.
This notion of using digital currency as a form of bridge funding is not unique to ZED Network. Earlier this month, Ripple announced a tie-up with money transfer giant MoneyGram. The arrangement involves the use of XRP, Ripple’s digital currency, to provide liquidity to financial institutions.