Free trapped capital in cross-border trade

FiatRails Settlement nets corridor-level obligations before settlement — reducing prefunding requirements, FX volatility premiums, and balance-sheet drag. No custody. No balance-sheet intermediation.

30–95% reduction in prefunded liquidity Material ROE uplift in transaction banking Lower FX volatility premiums No custody / No principal risk
1st Place — Ignyte x Avalanche 2026
Avalanche X HUB71 Cohort
Patent Pending (U.S. 63/943,488)

Cross-border settlement traps capital and prices risk inefficiently

In emerging-market B2B corridors, institutions are forced to pre-fund large nostro balances and warehouse FX risk across multi-day settlement windows. The result is trapped liquidity, high volatility premiums, poor asset turnover, and structurally weak ROE — even when transaction volumes are strong.

10–25%
of monthly corridor volume held as prefunded liquidity
70–300 bps
FX volatility premium embedded in B2B flows
T+2 to T+5
days of risk exposure priced into every transaction

Ranges typical in high-volatility EM corridors. Actual figures vary by corridor and counterparty.

Compress obligations. Settle only what matters.

FiatRails coordinates settlement between independent institutions by recording corridor-level obligations, netting them before settlement, and moving only residual value.

The protocol operates outside balance sheets, does not take custody, and never acts as a counterparty. All regulated activity remains with licensed institutions.

Gross Flows
Net Obligation
Residual Settlement

Balance-sheet outcomes that matter

Capital Efficiency

  • 30–60% reduction in prefunding (fiat-only mode)
  • 70–95% reduction (stablecoin-enabled mode)
  • Capital freed for productive deployment
$0.5–2M annual capital released per $100M corridor volume

FX Risk Compression

  • Reduced risk notional × risk duration
  • Shorter settlement windows (T+0 vs T+2–5)
  • Net exposure hedging vs gross exposure
Mechanically defensible reduction in volatility premium

ROE Improvement

  • Same transaction revenue
  • Lower equity allocated to settlement buffers
  • Higher asset turnover
ROE improves as nostro requirements shrink — commonly modeled as low-single-digit pp uplift at corridor level

Built for institutions constrained by capital, not scale

Regional & Tier-2 Banks

Banks with cross-border exposure seeking to optimize capital allocation in emerging market corridors.

PSPs & Money Transfer Operators

Payment institutions priced out of capital-inefficient corridors looking to expand geographic coverage.

Telco Wallets & Super-Apps

Mobile money operators managing high-volume flows who need efficient cross-border settlement.

Trade Finance & B2B Platforms

Platforms facilitating commercial payments that require predictable, capital-efficient settlement.

FiatRails enables these institutions to operate corridors that are currently capital-inefficient or uneconomic — without becoming banks, market makers, or custodians.

What FiatRails is — and is not

FiatRails IS

  • A settlement coordination protocol
  • A corridor-level netting engine
  • A non-custodial infrastructure layer
  • A technology service provider
  • ISO 20022 compatible

FiatRails IS NOT

  • A bank or deposit-taking institution
  • A payment service provider
  • A custodian of funds
  • A market maker or liquidity provider
  • An FX dealer or principal

Additive infrastructure — not a replacement

FiatRails integrates at the treasury and settlement layer using standard APIs and ISO 20022 messaging.

Institutions retain their existing rails, correspondent relationships, and FX arrangements. FiatRails simply reduces how much capital and risk those systems need to carry.

REST API ISO 20022 (pacs.008, pacs.009) No core system changes Existing correspondent rails

How settlement coordination works

Four steps from obligation to settlement. Integration via API or ISO 20022 messaging.

1

Record

Submit payment obligations via API throughout the settlement window

2

Net

Multilateral positions calculated across all corridor participants

3

Price

FX rates determined via institutional oracle at window close

4

Settle

Net positions settled, reducing gross capital movement by 90%+

Infrastructure components

Modular architecture designed for regulated financial institutions.

01

Netting Engine

Patent-pending multilateral netting with O(n) complexity. Calculate and settle net positions across multiple corridors simultaneously.

02

FX Oracle Layer

Institutional-grade rate determination at window close. Deterministic pricing ensures no execution slippage or front-running.

03

ISO 20022 Bridge

Native support for bank messaging standards. Integrate via pacs.008, pacs.009, or REST API with existing treasury systems.

04

Corridor Registry

Per-corridor isolation with configurable settlement windows, participant whitelisting, and jurisdiction-specific compliance rules.

05

Audit Infrastructure

Complete transaction history on immutable ledger. Built-in regulatory reporting and sanctions screening integration.

06

Non-Custodial Design

FiatRails coordinates settlement instructions but never holds funds or acts as principal. All regulated activities remain with licensed partners.

Built by banking professionals

Our team brings over 20 years of experience building mission-critical systems at Tier-1 financial institutions. We understand what it takes to build infrastructure that treasury teams can trust.

FiatRails operates as a technology service provider — never holding fiat, never custodying funds, enabling licensed partners to perform all regulated activities.

HSBC Citigroup Credit Suisse DBS Bank ANZ NAB

Pilot programme now open

We are onboarding a limited number of banks and payment service providers for our 2026 pilot across Africa, Middle East, and Asia corridors.