Greenbridge Markets joins Centiglobe Connect as a liquidity provider. Banks and payment firms in the Swedish network can now exchange tokenised deposits for ordinary money on demand, tying up less capital in advance.
Photo: Petter Sandgren (left), CEO of Centiglobe, and Svante Hedin, CEO of Greenbridge Markets.
Two Swedish companies take separate roles in the same payment network. Centiglobe runs Centiglobe Connect, a global member-based network headquartered in Sweden, where banks and payment firms send money across borders directly to one another without intermediaries. Settlement happens in tokenised deposits — bank deposits represented on a blockchain, with no tie to any one bank. Greenbridge Markets is now in the network as a liquidity provider, responsible for exchange between those deposits and ordinary money.
Greenbridge joins as an independent affiliate member rather than an ordinary network member. The firm stands on both sides of the exchange: members can obtain the network's tokenised deposits when they need cover for outgoing payments, and exchange them back into ordinary money when they need to pay out locally.
Members of Centiglobe Connect are banks, payment service providers and e-money institutions. The need arises because they collect and pay out ordinary money to their customers, while the transfer itself within the network happens in tokenised deposits.
The practical point Centiglobe makes is pre-funding: capital that has to be in place before payments actually happen. With a counterparty that exchanges on demand, members can decide for themselves when and how much liquidity to hold, rather than leaving it idle.
The same arrangement is meant to help another group: institutions that for various reasons cannot hold tokenised deposits on their own balance sheets.
"Greenbridge adds value to the network by improving access to liquidity for both sending and disbursing payments. This helps Members with limited access to liquidity and gives new Members faster access to the Centiglobe Connect Network," says Petter Sandgren, chief executive of Centiglobe.
Centiglobe says the network continues to take on new members and partners, and that Greenbridge strengthens the liquidity options available as it grows.
Greenbridge Markets describes itself as an independent specialist in liquidity and conversion between ordinary money, tokenised bank deposits and other forms of digital cash, across systems that do not yet connect to one another. Its team has a background in electronic trading, market-making, fixed income and foreign exchange at major banks and market-infrastructure businesses. Market-making means quoting both buy and sell prices in the market.
"We are very excited to work with Centiglobe and members on Centiglobe's network to enhance simplicity, speed and transparency in these markets. Global payments are evolving and we are thrilled to be part of this transformation," says Svante Hedin, chief executive of Greenbridge Markets.
Sources: Centiglobe, Greenbridge Markets
You have read what you can read for free. With an account you get unlimited access to all news and articles on kaupr.io — and become part of the network of investors, professionals and builders following onchain finance.