Settlement Computer

Six-product settlement infrastructure suite on a dedicated Avalanche L1. Multilateral netting, micro-transaction aggregation, cryptographic privacy, and post-quantum authentication — operating on testnet and ready for institutional evaluation.

91.2% average netting compression 11 corridors on testnet $12.13B gross volume processed Non-custodial / No principal risk
1st Place — Ignyte x Avalanche 2026
Avalanche X HUB71 Cohort
5 U.S. Patents Pending (~287 Claims)
CBUAE Regulatory Engagement
Cayman Foundation Company

Cross-border settlement traps capital and prices risk inefficiently

In emerging-market B2B corridors, institutions are forced to pre-fund large nostro balances and warehouse FX risk across multi-day settlement windows. The result is trapped liquidity, high volatility premiums, poor asset turnover, and structurally weak ROE — even when transaction volumes are strong.

CLS provides multilateral netting for 75 banks across 18 major currencies. The remaining 38,000+ institutions — Tier-2/3 banks, PSPs, MTOs — have no equivalent infrastructure. They settle gross, absorbing the full cost.

10–25%
of monthly corridor volume held as prefunded liquidity
70–300 bps
FX volatility premium embedded in B2B flows
T+2 to T+5
days of risk exposure priced into every transaction

Ranges typical in high-volatility EM corridors. Actual figures vary by corridor and counterparty.

Compress obligations. Settle only what matters.

The Settlement Computer coordinates settlement between independent institutions by recording corridor-level obligations, netting them before settlement, and moving only residual value.

The protocol operates outside balance sheets, does not take custody, and never acts as a counterparty. All regulated activity remains with licensed institutions.

Gross Flows
Net Obligation
Residual Settlement

Proven on dedicated Avalanche L1

Purpose-built settlement chain with sub-second finality, cryptographic privacy, post-quantum authentication, and continuous operation across 11 corridors. All metrics from testnet (Lagrange chain).

1,601
peak transactions per second
91.2%
average netting compression
11
settlement corridors on testnet
$12.13B
gross volume processed

Six products, one settlement chain

Each product addresses a distinct settlement domain. All share the same Avalanche L1 infrastructure, multi-tenancy model, and cryptographic privacy layer.

Live on Testnet

Settlement

Multilateral netting engine for cross-border institutional settlement. Corridor-level obligation compression with cross-corridor aggregation, bilateral pre-netting, and residual carry-forward.

11 corridors — 91.2% avg compression
$12.13B gross volume processed
Privacy: Pedersen commitments, Bulletproofs
View details →
Live on Testnet

PayNet

Micro-transaction aggregation with AI-powered ISO 20022 translation. Converts retail and mobile money flows into netting-eligible institutional obligations.

23,000+ obligations processed
Committed mode running 24/7
AI translation: 100% cache hit rate
View details →
Design Phase

RiskNet

Protocol-native risk intelligence. Closed-loop admission control and real-time counterparty exposure monitoring enforced at the VM layer — not advisory.

$4T cross-border market
Patent: PROV-002
View details →
Design Phase

Trade

Maturity-aware netting for trade finance. Document-anchored settlement for letters of credit, bills of lading, and documentary collections.

$8T+ trade finance TAM
Patent: PROV-003
View details →
Design Phase

Grid

Energy settlement netting for electricity, gas, and distributed energy resource obligations. Circular debt resolution with time-indexed settlement windows.

$8.8T/yr energy market
Patent: PROV-003
View details →
Design Phase

Nexus

Agentic clearing for autonomous economic agents. Machine-native settlement with causal shared state, graph-derived credit pricing, and adaptive liquidity optimisation.

65 claims — strongest patent
Patent: PROV-004
View details →

Balance-sheet outcomes that matter

Capital Efficiency

  • 91.2% average netting compression observed across 11 testnet corridors
  • 70–95% reduction in prefunding requirements
  • Capital freed for productive deployment
$10–20M nostro capital released per $100M/month corridor, with $0.8–3M annual financing cost eliminated

FX Risk Compression

  • Reduced risk notional x risk duration
  • Shorter settlement windows (T+0 vs T+2–5)
  • Net exposure hedging vs gross exposure
Mechanically defensible reduction in volatility premium

ROE Improvement

  • Same transaction revenue
  • Lower equity allocated to settlement buffers
  • Higher asset turnover
ROE improves as nostro requirements shrink — commonly modeled as low-single-digit pp uplift at corridor level

Built for institutions constrained by capital, not scale

Regional & Tier-2 Banks

Banks with cross-border exposure seeking to optimize capital allocation in emerging market corridors.

PSPs & Money Transfer Operators

Payment institutions priced out of capital-inefficient corridors looking to expand geographic coverage.

Telco Wallets & Super-Apps

Mobile money operators managing high-volume flows who need efficient cross-border settlement.

Trade Finance & B2B Platforms

Platforms facilitating commercial payments that require predictable, capital-efficient settlement.

The Settlement Computer enables these institutions to operate corridors that are currently capital-inefficient or uneconomic — without becoming banks, market makers, or custodians.

What the Settlement Computer is — and is not

The Settlement Computer IS

  • A settlement coordination technology platform
  • A corridor-level netting engine
  • A non-custodial infrastructure layer
  • A technology service provider
  • ISO 20022 CBPR+ compatible

The Settlement Computer IS NOT

  • A bank or deposit-taking institution
  • A payment service provider
  • A custodian of funds
  • A market maker or liquidity provider
  • An FX dealer or principal

Built to institutional standards

Protocol-level compliance and cryptographic security validated against international financial market standards.

Cryptographic Privacy Layer

Pedersen commitments for homomorphic netting, AES-256-SIV metadata encryption, Bulletproofs zero-knowledge range proofs (70ms proving), Shamir's Secret Sharing key distribution. Tiered view keys with participant-sovereign data delegation.

Post-Quantum Authentication

ML-DSA (FIPS 204) post-quantum digital signatures deployed via cloudflare/circl. Modes 44/65/87, hybrid Dilithium+ECDSA, batch verification, and on-chain key registry.

ISO 20022 CBPR+ Validated

Level 1 (schema conformance) and Level 2 (SWIFT usage guidelines) validation passed across all 5 message types: pain.001, pacs.008, pacs.002, camt.054, camt.053.

PFMI Self-Assessment

Mapped against all 24 CPMI-IOSCO Principles for Financial Market Infrastructures. Publication pending regulatory engagement.

Additive infrastructure — not a replacement

The Settlement Computer integrates at the treasury and settlement layer using standard APIs and ISO 20022 messaging.

Institutions retain their existing rails, correspondent relationships, and FX arrangements. The Settlement Computer reduces how much capital and risk those systems need to carry.

FX rate determination powered by AFXO — an institutional-grade FX oracle delivering deterministic rate feeds across global currency pairs.

REST API ISO 20022 (pain.001, pacs.008, pacs.002, camt.054, camt.053) No core system changes Existing correspondent rails

How settlement coordination works

Four steps from obligation to settlement. Integration via API or ISO 20022 messaging.

1

Record

Submit payment obligations via API throughout the settlement window

2

Net

Multilateral positions calculated across all corridor participants

3

Price

FX rates determined via institutional oracle at window close

4

Settle

Net positions settled — 91.2% average compression observed across testnet corridors

Technical capabilities

Purpose-built settlement chain with 11 consensus-level precompiles — not a generic blockchain deployment.

01

Netting Engine

Patent-pending multilateral netting with O(n) complexity. Per-corridor, cross-corridor, and bilateral netting with residual carry-forward.

02

Privacy Layer

Pedersen commitments for homomorphic netting on encrypted values. AES-256-SIV metadata encryption. Bulletproofs range proofs. Tiered view keys with on-chain delegation.

03

Post-Quantum Crypto

ML-DSA (FIPS 204) digital signatures via cloudflare/circl. Deployed on testnet — not simulated. Hybrid Dilithium+ECDSA available.

04

Multi-Tenancy

Per-corridor RBAC with 6-level role hierarchy. All six Settlement Computer products coexist on one chain with isolated corridor configurations.

05

ISO 20022 Bridge

Native CBPR+ support. AI-powered translation engine converts legacy and mobile money formats to ISO 20022 pacs.008 settlement instructions.

06

Non-Custodial Design

The Settlement Computer coordinates settlement instructions but never holds funds or acts as principal. All regulated activities remain with licensed partners.

Built by capital markets professionals

Our team brings over 20 years of experience building mission-critical systems at Tier-1 financial institutions. We understand what it takes to build infrastructure that treasury teams can trust.

FiatRails operates as a technology service provider — never holding fiat, never custodying funds, enabling licensed partners to perform all regulated activities.

HSBC Citigroup Credit Suisse DBS Bank ANZ NAB

Pilot programme — 2026

Now onboarding regulated institutions for our 2026 pilot programme across Africa, Middle East, and Asia corridors. Active regulatory engagement with central bank authorities.