Contribution of XPRT (Persistence) to Finance
The Persistence objective is to enhance the speed and efficiency of cross-border commerce and financing in order to reduce the 1.6 trillion financial gaps.
Persistence is a platform that powers Debt Marketplaces, what it simply does is to connect organizations with excess capital (lenders) with entities in need of capital (borrowers)
Important Aspects of Blockchain Utilized by Persistence
To create a connection, Persistence does this by utilizing a few important aspects of the Blockchain/Cryptocurrency ecosystem. These aspects include:
1. Capital movement: In a secure, instantaneous, borderless, and round-the-clock way
2. Asset tokenization: This entails utilizing Non-Fungible Tokens to tokenize ‘real-world' assets like as letters of credit, invoices, and bills of lading (representing cargo on a ship) (NFTs).
3. Decentralized Markets: Enabling cryptoassets and real-world assets to be used as collateral for lending and borrowing.
Real world assets may be traded or utilized as collateral to fund business requirements quickly, easily, and globally once it has been tokenized into an NFT.
There has never been a greater demand for a solution like Persistence. A significant and growing amount of institutional money, as well as new stablecoins, are seeking income.
The demand for MSMEs merchants and companies to get funding is growing all the time. Persistence is a good fit for the two. Persistence makes it possible to allocate global money more efficiently.
The Tendermint BFT consensus engine powers Persistence's Core mainnet, which is a Proof-of-Stake network.
Persistence's multi-chain tech stack (which now supports Cosmos, Ethereum, and other Tendermint-based chains) abstracts away the complexity for developers, allowing them to build DEXs, markets, lending/borrowing platforms, and other applications.
With their validator arm AUDIT.one, Persistence is also working on developing inter-chain NFT/Metadata standards with leading Proof-of-Stake networks/foundations and supporting the growth of the PoS ecosystem.
Financial Services Industry Inefficiencies hindering organization connection
1. Settlement timeframes are lengthy
SWIFT takes 2-3 business days to settle cross-border payments and remittances.
The yearly cost of this inefficiency, according to a BCG research commissioned by DTCC (the go-to business for settlement and endorsing in financial markets), is more than $10 billion.
2. For MSME businesses and enterprises, there is a lack of infrastructure and access
Small and medium-sized enterprise (SME) trade organizations, Family offices, and retail investors may not have access to SME Business or Trade financing options in the first place, even if they have the willingness and risk appetite to do so.
Until now, such high-yielding possibilities had been exclusive to larger financial firms. For Micro Small and Medium Enterprises (MSMEs), the rise of alternate sources of finance such as peer-to-peer lending has offered some relief in closing the funding gap.
P2P lending, on the other hand, is largely localized today, restricting loan availability.
3. Transparency is lacking, and trust is required
Marketplaces, Centralized exchanges (CEXs), platforms, and even e-wallets do not disclose their holdings in a transparent manner. End-users have no way of determining a platform's 'Proof-of-Solvency.'
As a result, third-party independent verifiers such as auditors are trusted. Auditors, on the other hand, have consistently failed to uncover fraudulent operations in both the developed and developing worlds, as evidenced by a long list of scandals over the previous century.
Persistence is a multi-asset system that focuses on liquid staking (pSTAKE), commodities (Comdex) and non-fungible tokens (NFTs). Persistence ecosystem goods are intended to increase global liquidity and facilitate value transfer.