Newrl, a public blockchain focused on real-world assets and finance, announced its partnership with US-based, MOVEM, a subsidiary of Buddyloan to enable low-cost USD remittance solutions. This undertaking is expected to enable users to carry out their financial transactions at a 10X lower remittance rate through the new blockchain-based integrated solution. The company will also match the market exchange rate for the transfer while offering transaction charges at 0.3-0.5%.
Newrl is a ‘Trust Network’ blockchain built for decentralized social finance. The company enables individuals and small businesses to access capital from their communities using their credibility and tokenized assets as collateral. MOVEM is a US-based decentralized & noncustodial wallet enabling P2P payments over USDC & other cryptos. MOVEM aims to target close to 40% market share, focusing on the daily wage workers’ remittances coming into India, through their offering.
With this partnership, Newrl’s aim is to increase the number of users and transactions through the chain. With the total market size for remittance being $100 billion and 90% of transactions happening from the US to India, NRIs working abroad would be able to save a significant amount of the money they send back home; the expectation for every 1000 INR is a saving of a minimum INR 40. Thus, this will not only regularize the intermittent trend of money flowing into the country but also smoothen the FDI flow curve, in turn stabilizing the economic cycle in the Indian market. Furthermore, the solution is KYC-based and all the parties are known to the application and available for verification by the regulators if the need arises. The entire process is digital and people need to maintain basic security practices while using any internet-banking application.
Commenting on this Swapnil Pawar, Founder of Newrl said, “In recent years, with the sharp increase of Indian laborforce migrating overseas, our intent has been towards making the financial aspect of their life simpler. We understand that supporting their families back in the country is a priority and with our initiative in support of MOVEM we are confident that we will be able to add value to their lives through small remitters of saving cost and time.”
Ramana Chinthapenta, Founder MOVEM, “Given the high rate of remittance percentage for overseas transactions from US to India, we have collaborated with Newrl to address the concern by offering a lower remittance percentage. We have built our USDC to INR payment rails and have managed to deliver a working prototype within a good time. We hope to add value and cost benefits for the Indian workforce overseas.”
Presently, remittances are charged at the rate of around 1% for usual transfers from USD to INR at an exchange price below the market. For the transfer values below 1000 $, this rate increases to even 3-5%. The process of remittance works by first transferring the USD to USDC (stablecoin) using Circle (company) in the US with a transfer rate of around 0.1-0.2% for the chain operation. Then the USDC is transferred to nUSD (Newrl’s USD stablecoin), and the next exchange with nINR at the prevailing market rate itself. Finally, nINR can be changed to flat INR. All of the processes on the chain combined have a transfer rate of 0.3-0.5% and the exchange is offered at the prevailing market rate which is a substantial increase, especially for retail transfers (remittances).
|Hari is a taxi driver, working in the states and living day-to-day life with the money he earns. He saves up anything and everything he can to send back to his family in India. He has 2 kids going to an acclaimed school, who are able to afford it just because their dad is earning in USD and after conversion, it becomes a good chunk in INR.|