Zodia Markets, a UK-headquartered institutional crypto trading business backed by Standard Chartered, has integrated Fireblocks to support the increased adoption of digital asset-based cross-border transactions. This strategic move offers a first-of-its-kind solution to improve efficiency in cross-border payments using stablecoins. Leveraging Zodia Markets’ multi-currency digital asset execution, and the Fireblocks Network, an enterprise-grade digital asset transfer platform for rapid peer-to-peer transactions and dynamic payment workflows, clients can now transfer funds more quickly than traditional fiat methods.
Transforming Cross-Border Payments with Digital Innovation
The process of making international payments has historically been fraught with challenges. However, the rise of the blockchain has introduced an alternative payments system that promises universal, cheap, secure, transparent payments, based on transaction finality through a decentralized consensus mechanism.
A traditional cross-border payment involving a foreign exchange transaction typically requires a local bank and a local correspondent bank to support local currency conversion to a foreign currency. In the case of conversion to USD, for example, this would require a USD correspondent bank, an additional bank to convert the USD into the receiving country’s local currency, which would then be received via their local correspondent bank and then a local branch of the beneficiary account.
Translating that process to a blockchain-based cross-border payment, Zodia Markets, a custodian and/or wallet provider such as Fireblocks would streamline the correspondent and international component of the transaction, with the beneficiary taking delivery of a USD stablecoin or local currency equivalent within minutes. Compared to traditional rails, this takes a fraction of the time, costs much less, and comes with decreased risk due to the short holding time of a US treasury-backed stablecoin, as opposed to a currency that spends days passing various international payments systems.
Cross-border payments between many jurisdictions suffer from slow transaction speeds, limited availability during business hours, high costs and a lack of transparency. Stablecoins enable value transfer using the internet, granting corporate entities a competitive edge the internet provides to other industries today.
The Rising Significance of Stablecoins in Digital Markets
Stablecoins, an on-chain asset which derives their value from being pegged to traditional assets such as fiat currencies, are quickly emerging as a cornerstone for institutional engagement. Although not all stablecoins are created equally, these on-chain, stable assets are transforming the way businesses approach cross-border transactions, remittances, and the broader financial landscape.
This stability is attracting payments companies and banks, which are now leveraging blockchain-based payment systems and stablecoins to achieve operational efficiencies, reduce transaction costs, and ensure secure, instantaneous settlements. By enabling the digital representation of money that can move as freely and quickly as information on the internet, stablecoins are not just enhancing existing payments systems but are also laying the groundwork for new, innovative financial services.
The strategic collaboration between Zodia Markets and Fireblocks is set to amplify benefits that stablecoins have to offer, further embedding digital currencies into the global financial ecosystem.
Delivering Real Operational Efficiencies
The operational efficiencies of blockchain-based payments, using stablecoins, is exponential when put in the context of multinational supply-chain and treasury management. Using the example of an airline purchasing fuel from a supplier in another country: The entire process can take an average of 3-5 days to complete, and longer if over the weekend. It can involve 6 different banking institutions, and can rely on 3 or more payment systems, all individually incurring costs. In fact, it’s not uncommon for multinational corporations to maintain hundreds, and some even thousands, of banking relationships, which further adds to the cost.
Inversely, using a blockchain-based payments system, such as those operating on Ethereum or Solana, a cross-border transaction like this one would take minutes to complete with a single custodian or wallet provider, instead of a bank account to manage a portfolio of multi-currency stablecoins.
Stablecoins are playing a critical role in the adoption of digital asset usage among financial institutions and corporations. We’re seeing them become a requirement for traditional players to engage with tokenization and blockchain payments.
How Zodia Markets is utilizing Fireblocks
In the midst of this shift towards digital assets, Zodia Markets is combining their efficient multi-currency digital asset execution with the Fireblocks Network to not only enhance the utility of stablecoins, but also to set a precedent for the financial industry to build their digital asset payment workflows at scale. This move aims to create a seamless, cost-effective cross-border payment solution that operates beyond traditional banking hours, empowering corporate treasurers and CFOs with greater control and flexibility over their financial operations.
For some time now, we’ve witnessed a growth in adoption amongst our Network to use stablecoins as a near-instant and cost-effective way to transfer value. As a global enterprise, the expansion to non-USD on/off ramps is also on the rise which makes this collaboration with Zodia Markets not just unique in its value proposition, but also marks the beginning of bringing FX on-chain.
Zodia Markets utilizes the Fireblocks Network, a global hub to connect, transact, and collaborate with the largest community of market participants and integrated partners, and the Fireblocks Payments Engine, a flexible workflow builder to automate and support cross-border payments. The combination allows Zodia Markets and Fireblocks to support mutual corporate clients in managing FX risk with stablecoin-backed transactions. The Fireblocks Network also provides Zodia Markets with the ability to streamline transaction execution, clearing, and settlement, as well as access and automate fiat on- and off-ramps.
Ultimately, this collaboration places control of cross-border payments squarely in the hands of corporate treasurers and CFOs. At a time when the world feels like it is fragmenting, moving cross-border payments to the internet may help bring it back together. We are proud to work with Fireblocks to drive this forward.
