Major

XSGD

Avalanche

Global financial systems are increasingly looking toward blockchain technology to solve the "clunky" and slow nature of traditional international money transfers.&nbsp;
Speaking at the Singapore Fintech Festival, Ava Labs' Asia head Justin Kim explained how the <a href="https://www.thestreet.com/crypto/tag/avalanche" rel="noopener noreferrer nofollow">Avalanche</a> network is providing the infrastructure for instant and regulated cross-border settlements.
According to Kim, the network is designed to help businesses move money while remaining fully compliant with local laws.&nbsp;
<blockquote>
 “Avalanche is a public blockchain that allows for instant and compliant onchain settlement for cross-border payments across multiple countries,” Kim <a href="https://x.com/AvaLabs/status/2040110115249172971" rel="noopener noreferrer nofollow">stated.</a>
</blockquote>
<a href="https://www.thestreet.com/crypto/innovation/avalanche-says-the-best-crypto-products-wont-feel-like-crypto" rel="noopener noreferrer nofollow">Related: Avalanche says the best crypto products won’t feel like crypto</a>
<h2 id="custom-features-for-regulated-finance">Custom features for regulated finance</h2>
The key to this compliance lies in the unique architecture of the Avalanche network.&nbsp;
By providing a <a href="https://www.thestreet.com/crypto/innovation/the-quiet-revolution-to-bring-wall-street-to-the-blockchain" rel="noopener noreferrer nofollow">Layer 1 blockchain</a> with unique features, Ava Labs allows companies to maintain strict oversight over their transactions.
“These features include whitelisting capability where you can basically control who can interact and make these transactions,” Kim explained.&nbsp;
<blockquote>
 “So you retain full control over KYC, and with the instant finality, the fastest transaction speed of Avalanche payment and settlement, they all happen at the same time.”
</blockquote>
KYC, or "Know Your Customer," is a mandatory process for financial institutions to verify the identity of their clients.&nbsp;
By baking these controls directly into the blockchain, Avalanche enables "Purpose Bound Money" (PBM)—programmable stablecoins that ensure funds are used only for their intended purpose.
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A primary example of this technology in action is StraitsX, a regulated <a href="https://www.thestreet.com/crypto/tag/stablecoins" rel="noopener noreferrer nofollow">stablecoin</a> issuer that provides the XSGD (a digital Singapore Dollar).&nbsp;
StraitsX operates under Singapore’s Payment Services Act and chose to build on its own Avalanche Layer 1 to maintain full control over its cross-border remittances.
By using Avalanche, the issuer can settle payments in approximately seconds. This is a significant upgrade over the <a href="https://www.thestreet.com/crypto/markets/citi-trims-bitcoin-ether-price-targets" rel="noopener noreferrer nofollow">Ethereum network</a>, where finalization can often take up to a minute.
<h2 id="a-high-performance-alternative">A high-performance alternative</h2>
Ava Labs has positioned Avalanche as a "built for business" alternative to older networks. It utilizes a Consensus Mechanism that allows it to scale effectively for companies with sustainable revenue and large user bases.
The platform’s native token, <a href="https://www.thestreet.com/crypto/tag/avax" rel="noopener noreferrer nofollow">AVAX</a>, is used to power these interoperable blockchains.
At the time of writing, AVAX was trending at $9.35, witnessing a 6.28% increase over the last 24 hours.&nbsp;
<a href="https://www.thestreet.com/crypto/innovation/ava-labs-joins-mastercard-program-to-transform-global-payments" rel="noopener noreferrer nofollow">Related: Ava Labs joins Mastercard program to transform global payments</a>

Ava Labs exec Justin Kim identifies key strategy for compliant digital payments

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