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Putting Financial Services On the Blockchain

Everex CoinMarketCap

Millions of crypto investors across the world are pouring in, exchanging fiat money for cryptocurrencies, and reshaping the banking and financial ecosystem. Even after almost 10 years after Bitcoin’s creation, it is still difficult to get crypto and fiat money to interact with each other. The conversion process is cumbersome and expensive, and cryptocurrency has yet to integrate itself into the multi-trillion dollar forex market. Everex, a blockchain-powered financial services platform was started to enable users to transfer, borrow, and trade in any fiat currency anywhere in the world. It understands the gap in the market and is able to provide transaction settlements in less than 30 seconds with low fees and military-grade security.

ICO and the Present Developments

Everex’s token offering was a resounding success with more than 8,000 contributors in August 2017. It raised $26 million in Bitcoin and Ether. It has now launched a functioning wallet that is usable for remittances. The Everex Token (EVX) is now listed on Lykke, Huobi.pro and ETHLend. The token allows for enhanced liquidity for all stakeholders. The company’s tech team has been adding features across its suite of core products and is executing a pilot for B2B payments with the Holley Group of China.

Everex CoinMarketCap
Source: CoinMarketCap

The Everex Business Model

Everex acts as an intermediary for fiat currency via its blockchain offering. It creates an equivalent currency unit (eFiat) on Ethereum; thus, eUSD would be created for transfer of fiat USD. Both eUSD and fiat USD will be exactly the same value. eFiat can be sent almost instantly anywhere in the world and confirmed by Ethereum miners. It will have a smart contract for each fiat currency. Any licensed financial institution (forex traders, banks, etc.) can swap fiat for eFiat and vice-versa.

So how is this useful? Consider two of the most widely use mobile wallets: AliPay and PayPal. Though they have hundreds of millions of users, they don’t have the simple functionality of allowing users to send payments to each other. These walled gardens are bad for business and trade. Everex connects all the wallets through its blockchain solution.

To that end, they’ve identified the following priorities:

  • Cross-border remittances
  • Faster Transfers and settlement within seconds
  • P2P online payments
  • Lower fees

The company earns revenue through the spreads between buying and selling rates. This also helps the initial traction as there is no visible fee being charged to the user. The aim is to keep the platform competitive and affordable for all users. The company charges a withdrawal fee of 1%-2% and has built an ecosystem where the user does not need to take the money out of his wallet. He can conduct any business, trade, or remittances through the Everex wallet, which can be downloaded from Google Play store for free. All transactions create a financial footprint that can then be leveraged in the future to create a credit history for the individual. This will be utilized to assess his credit worthiness and offer loans to eligible borrowers.

Products in the Everex System

Among its several products are:

  • Ethplorer – A search engine that allows users to explore a variety of Ethereum tokens.
  • Everex Wallet – For moving and storing cryptocurrencies.
  • eFiat – An Ethereum token pegged to fiat currency.
  • Everex fiat remittances – Currently available only in Thailand and Myanmar.
  • Chainy – Provides irreplaceable blockchain URls, or aeon links, for permanent proof of existence of user documents and a public text messaging service on the Ethereum blockchain.

Everex Vs. Ripple

Any bank can use Everex for cross-border payments and experience a faster, cheaper, and more secure way of transferring funds. Everex also concentrates on helping merchants get online, especially in the developing world. With more than 80 percent of e-commerce operating on cash on delivery in countries like Thailand, merchants face humongous costs in dealing with cash. Everex’s products allow merchants to benefit from SME loans and nimble pocket-friendly payment gateways.

Many have compared Everex to Ripple. Though the underlying use case is the same, Ripple works mostly with banks with a focus on larger transactions. These are usually bank-to-bank or corporate transactions. Instead, Everex has its eye on micropayments for retail consumers and small businesses. The founders believe that banks will benefit with having both offerings on their portfolio as now they can cover corporate clients s well as retail customers.

The Everex Team

Everex is based in Thailand and has deep domain experience in blockchain and allied tech. CEO and Co-Founder Alexi Lane and CTO/Co-Founder Alexander Kakunov launched Everex as Midas Reserv with a focus on digitizing and trading gold and other commodities on the blockchain. They pivoted to focus on putting cash on the blockchain as it was the primary step before any commodity could be traded successfully on a distributed ledger.

Their focus is also on financial inclusion. With more than two billion unbanked people in the world, the cash economy would be the third largest economy by size according. This represents a major opportunity and the founders believe that crypto can be leveraged for implementing cost-effective scalable solutions to provide access to capital, credit, and trading to this massive underserved population.

Lane is a fintech entrepreneur, investor, and executive with a proficiency in capital markets, financial services, and payments, including high-risk-load online billing systems. He has worked with marquee companies like Morgan Stanley. Kakunov is a systems architect and product manager for high-load online services. In the last three years, he has focused on the development of blockchain applications and product development.

Everex has a strong core team of experienced professionals and has on-boarded some serious names from crypto and fintech as advisors. These include Kirill Gourov from Full Node Capital, Anna Vladi from Accenture, Faisal Khan, and others.

Author:

Written by Heena Dhir with Allen Taylor.

Allen Taylor
Allen Taylor

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Allen Taylor

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