Former PayPal employees launch decentralized cross-border payment network on Algorand

Two former PayPal workers in business and technology have launched a cross-border payment system aimed at “faster, cheaper, and more transparent payments.”

In an announcement today, fintech infrastructure firm Six Clovers said it had launched its RAPID network connecting banks, merchants, and payment providers, allowing clients to transact in digital currencies and fiat. Founded by former PayPal employees Jim Nguyen and Nas Kavian and backed by venture capital firm Borderless Capital, the network is built on the Algorand blockchain and employs the technology behind stablecoins to represent fiat.

“Six Clovers is creating a bridge between traditional and decentralized finance, expanding access to the next generation of digital products and services,” said Algorand CEO Steve Kokinos.

The project claims its network will offer an alternative for payment providers currently using the SWIFT protocol for cross-border payments. RAPID uses USD Coin (USDC) to represent fiat on the Algorand blockchain, provides P2P transactions, and can reportedly handle up to 46,000 transactions per second.

Related: JPMorgan and DBS to launch blockchain cross-border payment platform

“Fueling cross-border transactions with regulated stablecoins to represent fiat on-chain has never been done before,” said Borderless Capital CEO David Garcia. “[The network] is going to unleash a wave of mass blockchain adoption across banks, merchants, and payment providers as they see the need to embrace the digital future.”

A proof-of-stake protocol, Algorand said its blockchain is fully carbon neutral as of April. The project has implemented a “sustainability oracle” in partnership with ClimateTrade to notarize its on-chain carbon footprint and then lock the equivalent amount of carbon credits into a “green treasury.”