Ratio CEO John Cho on Stablecoin FX: Asia's Won-to-Rupiah Payments Without the Dollar
Ratio CEO John Cho explains how won-to-rupiah stablecoin settlement on Kaia removes two dollar conversions, who carries FX risk and Korea's stablecoin law.
A Korean manufacturer sends payment to an Indonesian supplier, but the process is inefficient. The Korean company converts won to dollars and moves funds through SWIFT to the Indonesian bank's correspondent. This results in two foreign exchange conversions with spreads, fees, and two-day settlement times. The money also sits idle in pre-funded accounts, adding to costs.
Stablecoins like USDT and USDC have improved speed, but they don't directly settle in local currencies. Ratio, a Layer 1 platform, aims to streamline foreign exchange for cross-border payments by connecting stablecoins and regional ones, enabling direct settlement between local currencies.
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