A Cross-Border Digital Payment System

SoraNet leverages the latest digital asset technology to reduce transaction costs, enhance liquidity, and exchange value internationally regardless of compliance hindrances.

Soramitsu's Cross Border Payment Solution allows any number of market participants to immediately transact regardless of the local compliance needs. The flexible permission system allows for regulators to monitor and set rules with fixed parameters and embedded auditing.

Core Product Features
Problems Solved:
  • Settlement delay and finality
  • High correspondent banking and Forex transaction fees
  • End User Verification Efficiency (E-KYC)
  • Forex conversion for foreign bank account holders
Solution Features:
  • Potential for automated control by local regulator on payments initiated by the domestic users within CBPS.
  • Permissioned architecture allows for a rule-based system with segregation of responsibilities and viewership.
  • Possibility to use correspondent bank, exchange, or stable token models for payments.
  • Possibility to set up fees for domestic users by the regulator or payment agent.
  • Rules of payment agent registration inside the domain remain under control of the third party regulatory authority.
  • Possibility to issue unique asset-backed tokens in the system.
  • Built-in audit system interface.
A token based interbank payment model allows for rapid exchange of assets outside of traditional SWIFT architecture while still utilizing ISO 20022 messaging standards as needed.

"Internal" tokens used as a payment mechanism can be designed with specific qualities to ensure proper audibility/privacy/security, reduce transaction fees, and enhance settlement efficiency. There are multiple potential token models ranging from 100% collateralized by reserves to partially backed by a volatile asset or those minted by predetermined rules.

Below are two examples illustrating payment flows with and without an intermediary token for exchange.
System Architecture Type 1:
Integrated Central Retail Payment System
In this architecture, we have one regulator in each domestic bank network. Each Regulator Authority has its own domain in the CBPS that allows monitoring and control of the cross-border payments. The regulator controls the supply of XST within the RPS and issues XST for payment agents within the RPS. Regulator authorities exchange domestic currency for XST to perform cross-border payments. Domestic currencies are valid only inside the payment system of the RA while XST is valid for cross-border payments because it is controlled by the consensus-enforced monetary rules agreed to by the RAs. The Regulator decides which activities banks can perform inside the CBPS (eg. exchange, payments, XST purchase).

RPS: Retail payment system
CBPS: Cross-border payment solution
XST: CBPS stable tokens utilized between non-domestic payment agents; XST(USD), XST(JPY), XST(GOLD), XST(Any)
System Architecture Type 2:
Independent Payment Agent Network
This case may require some off-chain certification by a regulating authority to participate in the system. In this case, payment agents will participate in CBPS with an almost full set of established rights. FI will have own domain in CBPS, BRVS, fees control inside domain. Financial Institutions will not have rights to create accounts for other FI inside own domain, but still may provide services for Retail customers.

RPS: Retail payment system
CBPS: Cross-border payment solution
XST: CBPS stable tokens utilized between non-domestic payment agents; XST(USD), XST(JPY), XST(GOLD), XST(Any)
FI: Financial institution
BRVS: Business rules validation service
Technical Architecture
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