#Cyprus #Nicosia #ISX Financial #Eurosystem #RTGS

ISX Financial EU Plc Gains Access to T2 RTGS System

In a significant move within the financial services sector, ISX Financial EU Plc, a licensed electronic money institution in the European Economic Area (EEA), has announced its recent authorization to access T2, the Eurosystem's Real-Time Gross Settlement (RTGS) platform. This authorization, granted by the Central Bank of Cyprus (CBC), elevates ISX Financial to a leading position among non-bank participants in the European payment landscape.

Enhancing Operational Independence

With the ability to connect directly to the RTGS platform, ISX can manage its liquidity from its central bank accounts. This development allows for streamlined operations, as ISX can now handle high-value cross-border payments without relying on a sponsoring bank, a practice commonly required for electronic money and payment institutions. Nikogiannis Karantzis, CEO of ISX Financial, emphasized the importance of this new capability, stating that direct participation in the T2 RTGS system enhances the credibility and trustworthiness of their operations, while reducing operational risks and broadening the product offerings available for clients.

Capacities for Cross-Border Payments

Access to T2 not only empowers ISX to manage its liquidity more efficiently but also grants the capability to control SWIFT payments via its exclusive cross-border operations infrastructure. This advancement will enable ISX to send and receive payments in Euros (EUR) to and from financial institutions connected globally to central banks, thereby eliminating dependency on external SWIFT/BIC infrastructure provided by sponsoring banks. This capability positions ISX favorably in enhancing its participation in global correspondent networks and its ability to execute cross-border financial transactions.

Future Integration with TARGET Instant Payment Settlement (TIPS)

In addition to current advantages, the direct connection to T2 lays the groundwork for future access to the TARGET Instant Payment Settlement (TIPS) mechanism. This upcoming integration will facilitate instant payments between Euros (EUR), Danish Krone (DKK), and Swedish Krona (SEK) through the respective central banks. This feature is expected to significantly lower transaction costs, expedite settlement times, and reduce counterparty risk, greatly benefiting ISX Financial's operational capacity and customer service.

Strategic Developments in the Baltic Region

Furthermore, ISX Financial has already connected with the Bank of Latvia and is in the final stages of establishing connectivity with the Bank of Lithuania. These strategic alliances are aimed at enhancing operational diversity and system redundancy, which are essential for robust transaction processing. The anticipated benefits from these integrations are expected to positively impact near-term revenue streams for ISX Financial.

Company Overview

Based in Nicosia, ISX Financial EU Plc is a leading banking technology firm in the EEA, duly authorized as an electronic money institution by the Central Bank of Cyprus and regulated by the Financial Conduct Authority in the UK. CEO Nikogiannis Karantzis brings more than three decades of industry experience, including two decades in secure digital businesses spanning telecommunications, IP television, payment solutions, and electronic money. Holding degrees in engineering, law, and business administration, Karantzis is recognized for his expertise in intellectual property within the financial technology sector.

With this recent advancement, ISX Financial EU Plc is poised to redefine its role in the financial services ecosystem, enhancing its capability to serve clients more efficiently as a direct participant in crucial payment systems.