Lightnet, a Thai blockchain startup utilizing the Stellar blockchain network has reportedly raised USD31.2 in initial funding in order to improve international payments in Southeast Asia and potentially replace SWIFT, Cointelegraph reports on January 12th.
The company's funding round has been lead by a major regional financial conglomerate, the Singaporean United Overseas Bank (UOB) and South Korea’s Hanwha Investment & Securities. According to the chairman of Lightnet, Chatchaval Jiaravanon, Lightnet is designed to offer low-cost and instant financial inclusivity and mobility to more than 4 billion people and is planning to promote financial mobility and inclusivity for the unbanked and underbanked Asians.
One of the major advantages blockchain has already proven compared to the traditional currencies is the speed and efficiency of large money transfers. While traditional money transfers might take several days to complete, blockchain technology enables the transfer of billions in mere seconds with negligible fees. Thus the amount raised shouldn't come as too much of a surprise given the possibilities an implementation of such a money transfer system opens up. However, the adoption of such a system might prove more difficult as financial institutions still remain very weary of blockchain tech given its often unclear legal status which tends to get complicated with more countries involved.