FiatRails Settlement nets corridor-level obligations before settlement — reducing prefunding requirements, FX volatility premiums, and balance-sheet drag. No custody. No balance-sheet intermediation.
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.
CLS provides multilateral netting for 75 banks across 18 major currencies. The remaining 38,000+ institutions — Tier-2/3 banks, PSPs, MTOs — have no equivalent infrastructure. They settle gross, absorbing the full cost.
Ranges typical in high-volatility EM corridors. Actual figures vary by corridor and counterparty.
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.
Purpose-built settlement chain operating in fiat-only mode with sub-second finality, ISO 20022 message anchoring, and continuous operation across 5 corridors.
Banks with cross-border exposure seeking to optimize capital allocation in emerging market corridors.
Payment institutions priced out of capital-inefficient corridors looking to expand geographic coverage.
Mobile money operators managing high-volume flows who need efficient cross-border settlement.
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.
Protocol-level compliance infrastructure validated against international financial market standards.
Level 1 (schema conformance) and Level 2 (SWIFT usage guidelines) validation passed across all 5 message types: pain.001, pacs.008, pacs.002, camt.054, camt.053.
Mapped against all 24 CPMI-IOSCO Principles for Financial Market Infrastructures. Publication pending regulatory engagement.
87% of applicable controls implemented or in progress. Formal ISMS policies active with incident management procedures.
Continuous security scanning: Go vulnerability analysis, Solidity static analysis (Slither), secret detection, and dependency auditing on every commit.
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.
Four steps from obligation to settlement. Integration via API or ISO 20022 messaging.
Submit payment obligations via API throughout the settlement window
Multilateral positions calculated across all corridor participants
FX rates determined via institutional oracle at window close
Net positions settled — 94% average compression observed across live corridors
Modular architecture designed for regulated financial institutions.
Patent-pending multilateral netting with O(n) complexity. Calculate and settle net positions across multiple corridors simultaneously.
Institutional-grade rate determination at window close. Deterministic pricing ensures no execution slippage or front-running.
Native support for bank messaging standards. Integrate via pain.001, pacs.008, pacs.002, camt.054, camt.053, or REST API with existing treasury systems.
Per-corridor isolation with configurable settlement windows, participant whitelisting, and jurisdiction-specific compliance rules.
Complete transaction history on immutable ledger. Built-in regulatory reporting and sanctions screening integration.
FiatRails coordinates settlement instructions but never holds funds or acts as principal. All regulated activities remain with licensed partners.
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.
Now onboarding regulated institutions for our 2026 pilot programme across Africa, Middle East, and Asia corridors. Active regulatory engagement with central bank authorities.