Luxembourg-based bank Banking Circle SA has partnered with Ant Group, the affiliate company of the Chinese conglomerate Alibaba Group, to develop a new liquidity management project, exploring technology innovations on tokenised deposits which will improve the efficiency and speed of global fund settlements.
Alongside the blockchain platform developed by Ant Group, Banking Circle infrastructure can issue and distribute tokenised deposits. The blockchain platform can facilitate cross-border payments and liquidity management more efficiently.
Alongside the clear liquidity management benefits, the structure is Web3 compatible and provides further opportunities for cost-saving with FX and additional currencies to follow shortly.
Laust Bertelsen, CEO of Banking Circle, said: “Banking Circle is excited to work with Ant Group to pioneer innovations for global treasury management. Looking ahead, the two companies will continue to collaborate and strengthen our relationship globally.”
As a fully licenced bank, free of legacy systems, Banking Circle enables payments companies and banks of any scale to seize opportunities in the new economy – quickly, at low cost.
Banking Circle provides a suite of banking solutions, including bank connections for local clearing and cross-border payments, multi-currency accounts, virtual IBANs and correspondent and agency banking solutions.
Banking Circle aims to help customers reduce transaction costs, improve efficiency and transparency and optimise cash management through its various technologies and treasury solutions for its fintech customers.
Kelvin Li, head of the global fund platform of the international business group at Ant Group, added: “We are glad to partner with Banking Circle on technology innovations for tokenisation.
“It is aimed at improving the efficiency of liquidity and corporate treasury management, and facilitating the development of scalable and sustainable fintech solutions.”
In September, Ant Group introduced three additional mobile wallets for payments in the Philippines.
It aimed to improve the travel experience for visitors from Hong Kong, South Korea and Malaysia, offering the cashless payment option for their transactions.