Epiphyte, an instant settlement service provider, has secured a partnership with the UK to become the first to conduct FCA-regulated blockchain-based payments.
The Financial Conduct Authority (FCA), a financial regulatory body of the UK which oversees all of the country’s financial markets, has authorized Epiphyte to launch a service called SpecialFX, via the FCA’s sandbox.
Essentially, SpecialFX is expected to operate as an alternative to the conventional SWIFT network, an interbank financial network that facilitates the majority of international bank transfers.
Through the utilization of the blockchain technology and bitcoin, Epiphyte and the developers behind SpecialFX aim to leverage its partnership with the FCA to collaborate with prominent remittance outlets, FX companies and financial institutions.
“So we are going to be providing this clearing and settlement platform to remittance companies, to FX companies, and potentially at a later stage – although I can’t go into detail about it now – to corporates and even retail customers,” said Epiphyte CEO Edan Yago.
Yago further notes that a bitcoin blockchain-based financial system is beneficial for the regulators such as the FCA since it provides greater transparency and ability to confirm, validate and track transactions in real-time.
Most remittance settlement networks utilize independent financial systems that are enclosed