Avalanche Accelerates Breakthrough in Cross-Border Payments for MSBs

The world of finance is constantly evolving, and blockchain technology is playing a significant role in that transformation. For cryptocurrency enthusiasts and industry professionals, understanding how platforms leverage blockchain to solve real-world problems is key. One such platform, Axiym, built on the Avalanche blockchain, is making waves by targeting a crucial sector: money services businesses (MSBs).

Axiym: Accelerating Cross-Border Payments with Avalanche

Axiym is positioning itself as a global cross-border payment platform specifically designed to meet the growing demand from MSBs for efficient, blockchain-based infrastructure. The platform recently announced processing over $132 million in cumulative volume on the Avalanche blockchain, highlighting its operational scale.

According to Ava Labs’ Morgan Krupetsky, Axiym’s approach is unique because it abstracts the complex blockchain layer. This means MSBs can interact with the platform using interfaces similar to traditional financial services, without needing deep blockchain expertise. Axiym CEO Khibar Russel clarifies that MSBs don’t operate directly on-chain; instead, Axiym integrates blockchain capabilities into their existing payment systems behind the scenes.

This behind-the-scenes integration uses Avalanche to automate, move, and manage capital more efficiently, providing real-time credit and liquidity infrastructure globally.

Why Money Services Businesses Need Blockchain Solutions

Money services businesses are a diverse group, encompassing entities like Western Union, currency exchanges, crypto platforms, fintech firms, and check cashers. These businesses face significant challenges in traditional cross-border payments, including:

• Capital inefficiency
• SWIFT-based delays
• High transaction costs
• Fragmented frameworks

MSBs are increasingly recognizing the potential of blockchain to overcome these hurdles. Axiym directly addresses these pain points by embedding blockchain capabilities into their operations, leveraging Avalanche’s speed and efficiency.

Leveraging Stablecoins for Efficient Global Transactions

A key component of Axiym’s strategy is the use of stablecoins to power payments. These fiat-pegged assets are crucial for enabling low-cost, efficient cross-border transactions, especially in emerging markets. As Morgan Krupetsky notes, Axiym provides credit to global MSBs using stablecoins on the Avalanche C-Chain.

This approach enables real-time cross-border liquidity provisioning, which is often difficult or expensive using legacy payment rails. Data supports the benefit of stablecoins; a 2024 Chainalysis report found that stablecoin remittances from Sub-Saharan Africa are 60% cheaper than traditional fiat rails. This cost saving is a significant driver for adoption among MSBs and their customers.

The Impact of Blockchain Payments on Traditional Finance

While blockchain offers clear advantages in speed and transparency for cross-border payments, regulatory fragmentation remains a challenge for widespread adoption over legacy systems. However, platforms like Axiym are paving the way by integrating blockchain into existing financial structures.

The growing interest in blockchain payments is also evident in the wider market. Ripple has partnered with Chipper Cash for cross-border crypto transactions in Africa, and crypto payment startups like Mansa are attracting significant venture capital, securing $10 million to expand stablecoin cross-border services. These developments signal a broader trend towards blockchain-powered payment solutions.

Axiym’s Approach to Cross-Border Payment Innovation

Axiym’s clients are typically licensed payment companies in major financial centers like the UAE, UK, and Singapore. These companies facilitate fund transfers to remittance hubs across Asia, Africa, and Latin America. By using Avalanche and stablecoins, Axiym enables its clients to offer faster, cheaper, and more transparent services to their end-users.

The platform’s success, marked by processing over $132 million, demonstrates the viability of using blockchain to solve real-world financial problems for businesses. Axiym’s model of abstracting the blockchain complexity while delivering its benefits is a compelling approach for driving adoption among traditional money services businesses.

Summary

Axiym, powered by Avalanche, is making significant strides in the cross-border payments sector by focusing on the needs of money services businesses. By abstracting the blockchain layer and leveraging the speed and efficiency of Avalanche and stablecoins, Axiym provides a solution that addresses the traditional pain points of high costs, delays, and inefficiencies. The platform’s successful processing volume highlights the growing demand for blockchain payments and its potential to transform global financial transactions, offering a faster, cheaper alternative for businesses and individuals alike.