A Better Way to Move Money
At Covario we continually strive to find solutions to meet the needs of our clients.
No matter market conditions, one trend that Covario AG has observed is a steady increase in crypto funds transfer to improve upon the usually slow and expensive nature of FX conversion and cross-border funds transfer in traditional banking.
A comparison of the operational steps in the two alternatives highlights the efficiency gained making crypto part of the transaction, while achieving the same, if not higher, levels of anti-money laundering scrutiny.
- Client A sends funds into their account at Bank A with instructions to convert to a different currency.
- Bank A does the FX conversion — frequently charging a wide bid/ask spread or conversion fee.
- Bank A sends a wire transfer to a specified beneficial account holder, Client B, at Bank B, charging a fee for this wire.
- Depending upon how many correspondent banks are involved, Client B only receives good funds after 2–3 business days and likely has to pay a fee to Bank B to receive the funds.
*Both banks A and B perform AML checks.
Cross-Border Payment with Crypto
- Client A sends crypto (frequently, but not always, stablecoins) to Covario AG.
- For crypto, the provenance of all coins are screened with blockchain software and Client A has undergone thorough KYC and AML due diligence checks.
- Covario uses its liquidity aggregation platform to find the best price at which to convert the crypto into the payment currency of choice of Client A. The bid/ask spreads on these transactions is minute.
- The proceeds of the crypto sale are sent to Covario’s account at a crypto-licensed bank who is then able to make a same day remittance to Client B’s bank.
*This fiat offramp provides the same AML/KYC checking performed in the interbank transfer case. However, in this transaction the fund remittance is accomplished in a single day for a fraction of the price.
About Covario AG
Covario is an award-winning Swiss-based Crypto Prime Brokerage founded in 2019. Covario’s Prime Brokerage platform is a holistic solution for digital asset trading, algorithmic trading, clearing, financing and custody for institutional clients. Backed by a team of professionals with deep experience and understanding of institutional financial services, Covario’s offering combines asset protection and global reach with operational ease and efficiency. Visit: www.covar.io