Frequently asked questions and answers
ARYZE is a team of entrepreneurs, former bankers, marketing specialists and developers, based in Copenhagen, Denmark. We bridge the gap between conventional money and digital currencies by creating a true digital representation of cash. ARYZE aims to provide payment infrastructure that enables individuals, businesses, and IOT devices to make instant payments globally in a modular ecosystem.
ARYZE IVS is a registered Entrepreneurial limited company in Denmark that operates its business from Copenhagen, Denmark. ARYZE financial and business activities are regulated under relevant domestic laws, and ARYZE will be fully compliant with any Danish and European legislation. We are working together with compliance and legal agencies to ensure trust and transparency in all of our operations.
Cryptocurrencies in the form of stablecoins that are backed one-to-one by real underlying fiat currencies, issued by governments.
Corporations naturally prefer to receive a currency that is not volatile in return, and that is where ARYZE digital cash comes into play; a cryptographically secure token, linked to national money that will have the benefits of quick and immutable transactions through distributed ledgers, yet also the non-volatility of fiat currency. You get the best of both worlds.
Moreover, 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. This is to provide considerably less risk for corporations seeking to exchange currencies, as well as provide an additional revenue stream for ARYZE.
Furthermore, as digital cash is built on distributed ledger technologies, we can implement smart contracts for digital contract management, trade financing, and other programmable API solutions.
Using the latest modern technology, we can facilitate near zero cost transactions on a domestic level, and maximum 1% foreign exchange fees for cross-border transactions.
ARYZE Business Solutions will let businesses accept digital payments from any ARYZE user and merchants, as well as manage their various funds and conduct foreign exchange and payments. ARYZE Business will include various stand-alone and custom integration tools for any retailer or web shop to instantly get started.
Multi-Asset Modular App, codename MAMA, is one of the key elements of the entire ARYZE suite of products. Besides supporting multiple assets and currencies, MAMA is a mobile payment platform. The modularity of the app can be compared to the one seen in internet browsers like Chrome and Firefox, where users can install extensions and modules and thereby customize their experience to match their needs. This means that the very same payment application can be used by very different individuals, all over the world.
A “stablecoin” is a cryptocurrency, linked to a physical or digital asset, like gold or the other currencies like Danish Kroner, EURO or U.S. dollar. Stablecoins gain the incredible properties that come with blockchain and smart contracts, without being subject to the volatility associated with cryptocurrencies, like Bitcoin.
Stablecoins are usually created by businesses holding fiat value in a bank account and after that issue digital assets that are ‘backed’ by that underlying value. The digital token has value because it represents a claim on another asset with some defined value.
The dilemma with this method is that it is centralized. These tokens demand trust in the issuing party– that they own the underlying assets being represented and that they are prepared to honor the IOUs. This model imposes serious counterparty risk on holders of the token. These funds are at risk because if those bank accounts should ever be frozen, the accountants defrauding token holders, or the bank itself goes bankrupt; the stablecoins will, in that case, become an IOU on whatever’s left when they eventually get the bank accounts back, if ever.
Rather than having exchange traded stablecoins, ARYZE is developing Digital Cash – a true digital representation of cash.
ARYZE aims to be the primary payment infrastructure supporting global payments between individuals, businesses and IOT devices all over the world.
Support for additional currencies will be added over time including dominant reserve currencies like Japanese Yen and USD but also more exotic currencies like Argentinian pesos, South African Rand and Indian rupee, etc.
To minimize counterparty credit risk, ARYZE stablecoin solvency will be managed by placing a vast majority of the 1-1 liquidity in government or quasi-governmental bonds and bills, as there is no real risk of default for a central bank of a sovereign nation that issues its free-floating currency and where its debts are denominated in that currency. The federal reserve bank in The United States for example, will always be able to pay any debt it has because they can print money to do precisely that.
MAMA is the name of our multi-asset wallet application that will let users send, receive, and store currencies with no transaction fees.
One of the primary features of MAMA is its built-in modularity. Within the app, users will have the option to connect extensions or add-ons to MAMA and thereby to customize MAMA to individual needs and requirements. Developers and businesses will have a range of tools that will allow them to create modules that users can search for and enable.
Initial support will include tokenized DKK, EUR and USD. ARYZE aims to be the primary payment infrastructure supporting global payments between individuals, businesses and IOT devices all over the world. More and more fiat and crypto-currencies will be added over time including dominant reserve currencies like Japanese Yen and USD but also more exotic currencies like Argentinian Pesos, South African Rand and Indian Rupee, Philippine Peso etc.
Corporations and businesses to opt in to our ecosystem is that they can accept and complete payments in a secure, low-risk system without being subject to traditional transaction fees that they are otherwise used to – furthermore, they will have access to a range of liquidity management and analytical tools for internal operations as well as have all the capabilities that will come with the increasing innovation within blockchain and cryptocurrencies. These include but are not limited to peer to peer lending, micro-payments, automated escrow-services, automated Insurance and much more to come.
The first thing that will happen if a national digital currency is launched is that corporations will place most of their excess short-term liquidity in the national currency — bypassing bank deposits, which will ultimately undermine the way banking traditionally works.
An analysis by the Danish Central bank concludes that digital money, issued directly by the central bank would not provide better payment solutions in Denmark. Digital central bank money would fundamentally change Danmarks Nationalbank’s role in the financial system, making it a direct competitor to private banks. The introduction would also create risks of economic instability.
No, ARYZE is not a bank.
The definition of a bank is an establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers. ARYZE will operate under a European E-money license and not a bank license or licensed as a PI (Payment institution).
The functional distinction between Electronic Money (E-money) and Payment Institution (PI) is that E-money institutions in addition to the services provided by PI are qualified to issue Electronic Money. Electronic Money Institutions can store clients’ funds for a more extended period then what Payment Institutions are permitted and E-money license also allows the issue of payment cards, e-wallets and other payment instruments requiring storage of the client funds.