Core Banking & IBM Blockchain

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In collaboration with IBM, ARYZE has reviewed its architecture to heighten security measures, time to market, overall efficiency and cross-integration opportunities. Our core engine will rely on regulated cloud-native banking to satisfy required needs in terms of speed, security, and compliance. IBM has banking technology assets that we can directly incorporate into the functionality of our engine room for transaction management, serving as a bridge between traditional finance and the world of blockchain via our full-reserve stablecoin: Digital Cash and our backend RYZEnet.

Source: ARYZE

Core Layer

RYZEnet is our back-end and it is built on technology by our partners at IBM, Onfido, and Episode Six. It will ensure that we can deliver a secure, inclusive and modern cloud-native banking solution for anyone.

At the heart of RYZEnet, we have a cloud-native banking mainframe provided by IBM which can manage accounts, deposits/withdrawals to and from the established banking world (both central bank aspects and traditional banking rails), as well as storing key Know-Your-Customer data. This modern infrastructure will allow us to effectively compete with traditional payment institutions, with the added benefits of a zero-cost transaction environment.

To complement the core banking engine, ARYZE will also make use of IBMs Blockchain suite to settle transactions as well as handle KYC registry, through the use of Unique Identifiers (UID) as references. This way, we do not rely on blockchain for handling transactions but still, receive the numerous benefits that the technology can provide. Namely, data immutability, instantaneous settlement, and decentralized facilitation of trust.

Finally, IBM will supply cybersecurity services to keep bad actors out, protect critical assets, detect and stop threats, and provide business intelligence for incident response and compliance purposes. Data breaches and hacks are a constant worry for financial institutions – this is one of the many reasons why we have chosen to work with the industry leader in this aspect.

Management Layer

The outer parcel of RYZEnet is the management layer, which dictates the policy and corporate governance for the engine. This pertains to corporate structure, as well as contractual obligations that RYZEnet must adhere to. Furthermore, the relevant KYC/AML policies for each operational jurisdiction (i.e. which currencies we support and in which markets) are designed within the management layer, in collaboration with our auditing partners. It remains the goal of ARYZE to design a system that can accommodate a shift to a decentralized autonomous organization. However, for the immediate future, ARYZE will remain a centrally governed institution, to drive core product development and implementation strategy.

The management layer, along with the core engine, are regulated under a banking license. First and foremost, the relevant license will be acquired for the US market and US dollar, whereas later markets will require appropriate licenses accordingly. Ultimately, what we have designed is a modern banking institution, which can facilitate interaction with traditional payment rails and blockchain-native systems alike.

Source: “Key features of Digital Cash” ARYZE Digital Cash Deck

Traditional Banking Layer

ARYZE is not necessarily here to disrupt the bank sector but to reform money and build the bridges between emerging payments technologies. With that in mind, RYZEnet connects to legacy banking infrastructure through APIs and banking licenses. On one hand, we form a connection to central banks where we store collateral for Digital Cash in a low credit-risk environment. The purpose of this is twofold:

  • Commercial Banks, as we saw most recently in the Great Recession, can go bust and pose a systemic risk through fractional lending operations. Central Banks can never go bankrupt in their own currency and deposits placed within them can offset credit risk, which corporations typically must account for in terms of cost, should they choose commercial banks as custodians.
  • Storing collateral in central banks provides revenue from interest rates on short-term bonds, allowing ARYZE to reduce transaction fees to near zero for competitive superiority.

On the other hand, we build a bridge to the established payment rails through a traditional banking license. With this, we can form partnerships with correspondent banks worldwide, as well as access SWIFT, CHAPS (UK) and CHIPS (US) real-time gross settlement payments systems for same-day payments. To this end, we do not require our users to create a banking relationship with us directly and instead can use existing solutions to integrate with ours and lower barriers of entry.

Source: ARYZE Official Youtube Channel

Interoperability Layer

ARYZE remains steadfast in our commitment to creating Digital Cash infrastructure for both traditional enterprises, mainstream audiences, as well as the innovations that are springing forth from blockchain development communities around the world. Legacy blockchains, if we wish to call them that, have in the past been stubborn in their interaction with other ledgers, providing little to no interoperability across the various databases. However, through APIs and interledger protocols, RYZEnet can permit the issuance of stablecoins on third-party ledgers.

The key to this is that the Digital Cash banking engine can connect to known and trusted digital exchanges, and thereby provide a gateway into utilizing stablecoins for decentralized applications built on blockchains. Rather than having to convert various cryptocurrencies for each other in order to remain relevant on a particular blockchain, RYZEnet can issue stable digital fiat with unique identifiers onto a blockchain, where Digital Cash is redeemable for the corresponding value through deposits held in central banks.

Taking care not to provide a gateway into illegal activities, the exchanges that will become partners with ARYZE must maintain appropriate KYC levels for their clients.  

Source: ARYZE Official Youtube

Application Layer

While exchanges will primarily access RYZEnet directly through APIs, we also provide a suite of consumer and business applications for a seamless user experience. Individuals can use the Multi-Asset Modular Application (MAMA) as digital payments and banking solution. MAMA allows users to store, send and receive Digital Cash without transaction fees, as well as receive near mid-market exchange rates for cross-currency payments. This application houses a multitude of extensions or modules for a customizable experience, where licensed developers can build said modules in an open-source setting.

In contrast, businesses will have a user on MAMA Business – a web-based dashboard for managing funds in sub-accounts, the ability to minimize costs and delays for cross-border payments, designing custom payment flows, and much more. The business dashboard also allows module installation, e-commerce integrations, and invoicing.

The application layer of the system is governed under an e-money license, depending on the jurisdiction, similar to how RYZEnet is governed under a banking license relative to the geographic market of focus.

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