Axiym, a global cross-border payment platform headquartered in Dubai, is focusing on providing blockchain-based infrastructure and stablecoin solutions to money services businesses (MSBs) for international transactions. The company recently announced it has processed over $132 million in cumulative volume on the Avalanche blockchain.
This move addresses the increasing demand from MSBs seeking to improve the efficiency and transparency of their payment operations. Axiym’s platform leverages Avalanche to provide real-time credit and liquidity infrastructure, enabling MSBs to automate, move, and manage capital more effectively.
What are Money Services Businesses (MSBs)?
MSBs encompass a wide range of financial service providers, including:
- Money transmitters (e.g., Western Union)
- Currency exchanges
- Crypto platforms
- Fintech firms
- Check cashers
According to Morgan Krupetsky, head of institutions and capital markets at Ava Labs, MSBs are increasingly adopting blockchain innovations to enhance their operations.
How Axiym Connects MSBs to Avalanche:
Axiym CEO Khibar Rassul explains that MSBs don’t directly operate on the blockchain. Instead, Axiym acts as a bridge, connecting their existing payment operations to Avalanche in the background. This allows them to leverage the benefits of blockchain technology without needing to overhaul their entire infrastructure.
Krupetsky further details that Axiym provides credit to global MSBs using stablecoins on the Avalanche C-Chain, enabling real-time cross-border liquidity provisioning. This approach is significantly faster and more cost-effective than traditional payment methods.
The Growing Need for Cross-Border Payment Solutions
Axiym primarily serves licensed payment companies based in major financial hubs such as the UAE, the United Kingdom, and Singapore. These companies facilitate payments to remittance hubs across Asia, Africa, and Latin America.
Addressing Pain Points in Traditional Cross-Border Payments
Axiym’s platform aims to address several key challenges associated with traditional cross-border payments, including:
- Capital inefficiency
- SWIFT-based delays
- High costs
- Fragmented frameworks
While blockchain offers speed and transparency, regulatory complexities have hindered its widespread adoption. Axiym is tackling this issue by integrating blockchain capabilities directly into existing payment operations via Avalanche.
The Role of Stablecoins
Stablecoins are playing an increasingly important role in enabling low-cost, efficient cross-border payments. These fiat-pegged assets have gained considerable traction in emerging markets due to their stability and ease of use.
A 2024 Chainalysis report revealed that stablecoin remittances from Sub-Saharan Africa are 60% cheaper than traditional fiat rails, highlighting the potential for significant cost savings.
Recent Developments in Blockchain-Based Payments
The cross-border payment space is witnessing growing activity, with companies like Ripple partnering with African payment providers like Chipper Cash to facilitate crypto transactions. Crypto-focused payment startups are also attracting venture capital investment, as seen with Mansa’s recent $10 million funding round to expand its stablecoin cross-border payment services.
The Future of Cross-Border Payments
The adoption of blockchain technology and stablecoins is poised to transform the landscape of cross-border payments, offering faster, cheaper, and more transparent solutions for individuals and businesses alike. Axiym’s use of Avalanche is a prime example of how blockchain can be integrated into existing payment infrastructure to unlock significant efficiency gains.
