The Japan-based crypto exchange, FXCoin, has partnered with several financial heavyweights to develop a crypto-based remittance solution that is not affected by the market’s high volatility. Some of the players that will work with FXCoin on this product include SBI holdings, which already backs the exchange, having participated in its third-party share allotment.
FXCoin was launched back in 2018 by ex-dealers at Deutsche Bank but only received a trading license from the Japan Financial Services Agency (FSA) in December 2019. The exchange started accepting BTC accounts in April and later launched trading services. However, their cutting edge product is now an XRP built remittance solution that seeks to maximize crypto utility.
According to Nikkei, which first reported the new milestone by FXCoin, the pilot solution is set for debut later in the month. This price volatility-resistant solution will enable FXCoin users to efficiently calculate their transaction costs to avoid losses attributed to market swings. Notably, remittance prospects include domestic companies in Japan that transact globally.
The exchange had already signaled an intention to scale in crypto remittance solutions according to sentiments shared by Yasuo Matsuda, a senior strategist at FXCoin,
“Until now, crypto assets have been used mainly for speculative purposes due to the magnitude of price movements …
To establish the Swap market and expand the usage for actual demand, to do so, we will proceed with the demonstration experiment of domestic remittance and overseas remittance through XRP, and finally, global cash management, corporate finance, and trade.”
Nikkei was keen to note that the use case for crypto remittance solutions is in demand and will probably pick up if the FXCoin solution or one from its peer competitors proves to be successful. As it stands, SBI already leverages Ripple’s tech to provide a remittance solution dubbed ‘SBI Remit’ for Thai nationals in Japan. Other initiatives include a blockchain-based payment and remittance app ‘MoneyTap,’ which it co-launched with Ripple.