Recently, Knox Wire launched a real-time gross settlement (RTGS) system designed to make global interbank transfers instant. The new tool intends to link over 30 thousand banking institutions globally, in over 200 countries. It will act as a single network combining two ways of settling payments.
Knox Wire; Two Ways to Pay
Knox Wire recently launched its network whose main aim is to help in settling international cross-border transfers between banks. Knox Wire uses a dual payment system to complete transactions across many institutions quickly.
According to a recent press release from the fintech entity, Knox Wire combines a wired system with the real-time gross settlement(RTGS) system. The wired transfer is a system capable of completing transactions to many institutions. It can support tens of thousands of institutions across many different countries. One problem associated with wired transfers is the length of transaction settlement.
Knox Wire brings a tool with both RTGS and wire transfer solutions. As per their website, the RTGS system is named Knox Quantum. It uses financial messaging to aid in completing international interbank transactions. Globenewswire states, “Knox Quantum powers real-time transactions, using financial messaging between participating financial institutions.”
The new technology is designed solely to provide speedy settlement of transactions, and it is near-instant since it’s just about sending confirmation messaging online. However, it can support very few institutions.
Nonetheless, Knox Wire acknowledges that for the Knox Quantum to expand its reach to several institutions, it will be combined with an innovational network dubbed Knoxnet. Knoxnet will facilitate off-network payments(wired) between local partner banks. Hence, Knox Wire will host hundreds or thousands of banking institutions within a country courtesy of Knoxnet.
By combining Knox Quantum and Knoxnet, the Knox Wire network will reach over 30000 financial institutions across the globe. Knox Moreover, Knox Wire is capable of supporting fast international transfers. Stephen McCullah notes that “Knox Wire was built to set a new global standard for network size and settlement speed.”
As of now, Knox Wire could support over 150 currencies. Additionally, the platform’s team stated that they could complete global interbank settlements within 2 seconds. However, the local settlement speed could depend on the region, some lasting seconds, while others go to 4 days.
Knox’s Onboarding, Security, and Adoption
Knox Wire mentioned that they had onboarded over a dozen financial institutions during its debut. Accordingly, the release indicates that the requests queue has been long since launch day.
Knox set its request, acceptance, and onboarding period to about two weeks. After the period, the participant institution and the employees will work with the network. The network’s team also mentioned that no special hardware or personnel are required in running things at friendly banks. Knox Wire does not require any upfront costs.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.