DigitalForest Blog

Top 5 fintech blockchain projects. Part 2

Examples of financial blockchain projects in 2020
Kristina Novikova
Research Analyst at DigitalForest
May 15, 2019
The financial industry is one of the most dynamic when it comes for the development and implementation of solutions based on blockchain technology. The blockchain allows to streamline the transformation of the fintech sector and modernize problem solving approaches in this area.

In this article, we will talk about the 5 most outstanding blockchain projects of 2020 in the fintech area.

Read the first part of financial blockchain projects overview
Top 7 most successful blockchain projects in fintech
Bakkt was founded by the Intercontinental Exchange in 2018. Bakkt is an ecosystem that consists of various digital asset management tools: crypto-exchange, digital wallet, payment system, Bitcoin futures and options, and etc.
Bakkt application
Bakkt is fully regulated by US laws. The company is working to ensure that cryptocurrencies are as available as traditional money and try to make their use more common.

For example, Bakkt announced a partnership with Starbucks coffee shop chain. Starbucks mobile app users got an option to pay with Bakkt Cash, using the Bakkt digital wallet, at the checkout.
Interbank Information Network (IIN) is a network based on blockchain technology and developed by J.P. Morgan. This system was created to solve the problems of interbank information exchange, minimize interference in the process of cross-border payments and accelerate the receipt of payments by beneficiaries.

IIN is based on Quorum, a private version of the Ethereum blockchain network. The system allows participating banks to exchange data related to compliance requests in real time.

In order to process a compliance request, typically, banks need to verify three components: name, date of birth, and address. Also, compliance inquiries need to be checked for anti-money laundering, which can take several days. In addition, sometimes a payment can be mistakenly flagged as false positive, and it will require additional verification. With the help of blockchain technology, all parties involved in the verification can be connected, so they will not need to contact each other, since the data they need is already on the blockchain. Thus, solving a problem takes a matter of minutes, instead of a few days.

About 400 banks worldwide have already joined INN. A complete list is available here.
Learn how to integrate blockchain solutions to your business
Connext provides users with an infrastructure layer on top of the Ethereum blockchain and helps arrange processes related to instant P2P transactions. Connext was designed to help avoid the complexities and additional costs that can arise from various scenarios that use P2P blockchain transactions.

Connext helps various platforms provide instant transfers from wallet to wallet, provide P2P micropayments, support marketplaces and create games on the Ethereum network.

Connext is developed using state channels, channels that allow blockchain users to group common Ethereum transactions without the need to trust intermediaries. State channels do not require the use of any third-party services or the addition of functionality to the network, they simply allow existing transactions in Ethereum to happen faster and with lower costs, placing more transactions in each block.

Using state channels, Connext scales Ethereum and allows users to collect their transactions into a single network transfer. Connext gives users access to nodes where they can create channels and send transactions to other network channels.

Projects that already use the Connext Network technology are Mosendo, Provide, Ujomusic and Metamask.
IBM Blockchain World Wire is a solution developed by IBM to provide real-time international payments.

World Wire uses blockchain technology and the Stellar protocol, which ensures reliability and high speed of payment transactions processing.

To make a money transfer using the IBM Blockchain World Wire, financial institutions have to agree to use a stablecoin, a central bank's digital currency or another digital asset, which will act as a connecting asset between any two traditional currencies involved in the transfer. The introduction of digital assets simplifies the processing of international transactions.

To start using the system, companies do not need to enable any new software; they can use their existing payment systems, which will be connected to World Wire through the API. All transactions executed in the system will be stored on the blockchain, which will simplify future audits.

World Wire already supports settlements using Stellar Lumens and stablecoin in US dollars thanks to collaboration with Stronghold, the infrastructure for virtual payment networks. With the launch of World Wire, 6 international banks, including Banco Bradesco, Bank Busan and Rizal Commercial Banking Corporation (RCBC), released their own stablecoins on World Wire, thereby providing the functionality to transfer such traditional currencies as Euros, Indonesian Rupiahs, Philippine Pesos, Korean won and the Brazilian real.

Currently World Wire provides money transfers in 72 countries, and includes 47 currencies and 44 bank systems endpoints.
Finstore is an investment platform launched by the Belarusian bank BelVEB. The platform gives companies the opportunity to tokenize corporate bonds. To list their token, a company needs to undergo some compliance checks for such requirements as absence of arrears in treasure payments, information security provisioning, information disclosure on liquidation or bankruptcy, and others. Tokens issued by companies on the platform are regulated and protected by the legislation of the Republic of Belarus, the decree "On the development of the digital economy".

Finstore customers can invest in companies tokens listed on the platform. The cost of the token starts at $100, and the annual income rate starts from 5.5%. There returns on investment are higher than typical rates for traditional financial instruments, and the income from tokens is not taxed. The interest is paid quarterly and users have the opportunity to withdraw funds to a bank card.

To start working with the platform, the customer must register, confirm their identity and deposit money to the digital wallet. All the transactions on Finstore are made using the internal digital currency called Stable coin.

As far as we know, tokens listed on Finstore are issued on the Open Interaction System, a decentralized platform based on blockchain technology and developed by the Banking Technology Center.

Such companies as Belwest, MAZ, Chisty Bereg, PARKERPLAST, and Open Line have already listed their token on the platform.
Finstore interface
Right now, the project is available to individuals, residents of Belarus, but in 2020 Finstore plans to begin providing its services to legal entities and non-residents of Belarus.

Sources

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