Smart Token Chain, a company that uses patent-pending Smart Token technology combining smart contracts, tokenization, and blockchain to combine financial services and establish a common global standard for value exchange, announced on Wednesday the launch of its new Smart Contract Settlement Exchange.
According to the company, the exchange will connect diverse banking and other payments systems worldwide without requiring each institution to integrate to hundreds of blockchain payment systems.
Sharing details about the exchange, Thomas Meredith, CEO of Smart Token Chain, stated:
“The blockchain promises rapid, secure and inexpensive transactions using smart contracts. It allows a decentralized ledger system to manage transactions in a secure manner. But if everyone is creating their own proprietary solution, how will all these institutions communicate with each other? Without that integration piece, investments in blockchain settlement systems may not pay off.”
He then explained:
“Smart Contract settlement systems will remain proprietary. Financial institutions do not want to exchange assets and settle payments across P2P networks. But, building connections between counterparties so that all the proprietary systems built over the next decade will easily communicate, will take more investment than many banks and asset traders will want to bear.”
Smart Token Chain also revealed that it has created the system that will eliminate the cost of building all those interfaces. This will notably speed up acceptance of blockchain solutions for smart contract settlement from two days or more, to real-time.
Meredith added:
“Imagine an oil trader agreeing on a contract, setting up the smart contract, and completing the final transfer of oil and payment all within the hour. Imagine how much more business can be done with that speed of settlement. Imagine how much less trust would be required to wait minutes for payment rather than two days? Think of how many more deals could be done, with lower friction, lower risk, and lower cost.”
