Aryze[1], a Danish crypto startup developing a global payments system, has completed its initial coin offering (ICO), raising US$1.6 million from 278 individuals representing 14 different nationalities, the company said on Thursday.
Established in 2017, Aryze uses blockchain technology to create a global payments platform powered by fully redeemable stablecoins backed by and pegged to national currencies. Aryze will initially issue tokenized Danish kroners, euros and US dollars. More currencies will be added over time, according[2] to Aryze’s FAQ page.
These stablecoins will be a “true digital representation of cash” running on a payments infrastructure that enables people, businesses and Internet-of-Things (IoT) devices to make instant payments globally with no transaction fees.
The stablecoins solvency will be managed by placing a vast majority of the 1-1 liquidity in government or quasi-governmental bonds and bills.
“Aryze collateralizes stablecoins by incorporating government risk. We’re essentially insuring deposits through short-term government bonds and bills and working towards drastically reducing credit risk,” reads the company’s website. “This is to provide considerably less risk for corporations seeking to exchange currencies, as well as provide an additional revenue stream for Aryze.”
Aryze aims to provide a cheaper, more efficient alternative to cross-border transactions and commerce. Aryze co-founder and CFO Morten Nielsen told[3] Coin Rivet in an interview earlier this month that, at the moment, it costs “an absolute fortune” to move money across the world.
“If someone in the US wants to send US$10 to a person in the Philippines after a hurricane, they will be able to do this and US$9.90 will arrive in the local currency,” Nielsen cited as an example.
“I come from an investment banking background and I want to make a contribution to the world that goes beyond what I’ve done in the past.
