Implementation demonstrates how Purpose-Bound Money enables secure and efficient trade settlement
Singapore, 27 November 2024 — Ample Fintech, a Web3 enterprise payment and tokenization SaaS platform provider, and StraitsX, a regulated payment infrastructure provider, today announced the successful execution of an escrow payment using Purpose-Bound Money (PBM) technology in a USD 100,000 beef trading transaction between a Hong Kong exporter and an Australian importer. This milestone transaction demonstrates how PBM technology can effectively facilitate secure escrow payments in international trade.
The trade, representing the second successful implementation at this scale, utilized Purpose-Bound Money to create a secure escrow payment mechanism where funds in XUSD stablecoin were bound with specific trade conditions. When these predefined conditions were met, the PBM automatically released the payment to the Hong Kong exporter, ensuring a secure and efficient settlement process.
“The successful completion of this trade demonstrates the transformative potential of Purpose-Bound Money in facilitating escrow payments. Utilising blockchain technology to enable seamless cross-border payments has always been our mission.” said Gloria He, Senior Strategic Initiatives Manager at StraitsX. “Our XUSD stablecoin, when wrapped with specific underlying conditions, in the form of PBM, provides the stability and security needed for cross-border trade while enabling efficient digital settlements.Through this, we also hope to connect the diverse economies across regions together to bring to reality a connected and inclusive digital economy.”
The escrow payment via PBM delivered several key advantages:
Automated payment release upon fulfillment of trade conditions
Reduced counterparty risk for both buyers and sellers
Near-instantaneous settlement upon condition verification
Complete transparency in payment status
Maintained fungibility of the underlying digital currency post-settlement
“This implementation showcases how Purpose-Bound Money can effectively facilitate escrow payments in international trade,” said Louis Wan, Head of Research at Ample Fintech. “Through our enterprise-grade Web3 payment infrastructure, we’re able to combine PBM technology with traditional trade processes to enable secure and efficient cross-border settlements. The Australian importer and Hong Kong exporter both benefited from this streamlined process, where the bound XUSD was automatically released upon meeting the trade conditions.”
This transaction represents a significant step forward in modernizing escrow payments in international trade, particularly for cross-border agricultural trade. The Purpose-Bound Money protocol enabled the creation of secure escrow arrangements through digital means, demonstrating how enterprise Web3 technology can make trade settlement more efficient while maintaining security.
About Ample Fintech
Ample FinTech is a Singapore-based financial technology company focused on developing enterprise Web3 payment and tokenization solutions. Ample FinTech is committed to enhancing the inclusivity and sustainability of global financial services by simplifying global corporate payment processes, improving accessibility and transaction efficiency for global payments, and unlocking potential economic value for businesses and individuals.
Since its establishment, Ample FinTech has successfully completed two pilot projects related to CBDC, stablecoin, digital credentials, and tokenization through collaboration with three central banks. Additionally, the Ample FinTech team has received a FSTI lA grant from the Monetary Authority of Singapore (MAS) in 2024 for its groundbreaking work in digital credentials and programmable payments.
