#Cyprus #Nicosia #ISX Financial #Central Bank #T2 RTGS

ISX Financial EU Plc Gains Direct Access to T2 RTGS

In a significant development, ISX Financial EU Plc, a prominent Electronic Money Institution (EMI) authorized within the EEA, has announced its successful authorization by the Central Bank of Cyprus (CBC) to access the T2 real-time gross settlement (RTGS) platform. This advancement places ISX at the forefront of non-bank participation within the Euro payment framework, signifying a notable shift in its operational capabilities.

Direct Communication with Eurosystem RTGS

The authorization received by ISXX allows for direct communication with the Eurosystem’s RTGS platform, reinforcing its ability to process high-value, urgent payments across borders without the usual dependence on a sponsor bank. This level of operational independence introduces unprecedented flexibility and control over liquidity management for the company.

Enhancing Credibility and Trust

ISX's CEO, Nikogiannis Karantzis, emphasized the trust this direct participation instills among clients and partners, stating, "Being a direct T2 RTGS participant results in enhanced credibility and counterparty trust, together with reducing operational risk and extending the range of products we can offer to our customers." With this new capability, ISX aims to elevate its service offerings and improve overall customer satisfaction.

Independence in Liquidity Management

Before this authorization, many electronic money and payment institutions were required to rely on third-party sponsor banks to manage their liquidity. However, with the T2 access, ISXX can now independently manage its liquidity pool within its central bank accounts. This change not only increases efficiency but also diminishes the risks typically associated with third-party operations.

Streamlined SWIFT Payments

Additionally, ISXX is set to strengthen its cross-border payment infrastructure. The T2 access allows for enhanced management of SWIFT payments directly through its operations, permitting the company to send and receive Euro (€) payments from a broad network of bank-connected financial institutions worldwide. This capability represents a major upgrade in ISX's payment process, minimizing delays and costs associated with using traditional correspondent banks.

Future Prospects with TIPS Integration

Looking ahead, ISXX is preparing for integration with the TARGET Instant Payment Settlement (TIPS) system, which will enable the company to settle instant payments in Euro (€), Danish Crown (DKK), and Swedish Crown (SEK) directly via their respective central banks. This integration is projected to significantly reduce transaction costs, accelerate settlement speeds, and mitigate counterparty risks, which are crucial for enhancing operational efficiency.

Positive Impact on Revenue Streams

As of now, ISX has already established connectivity with the (Central) Bank of Latvia, with plans for imminent commencement. Additionally, the company is in the final stages of enhancing connectivity with the (Central) Bank of Lithuania, which aims to provide further path diversity and system redundancy. These steps are expected to have a beneficial impact on ISX's revenue in the near future.

About ISX Financial EU Plc

Headquartered in Nicosia, Cyprus, ISX Financial EU Plc is a leading banktech company operating as an EMI, authorized by the Central Bank of Cyprus and regulated in the UK by the Financial Conduct Authority. With over three decades of experience in the industry, CEO Nikogiannis (Nickolas John) Karantzis brings extensive expertise in digital enterprises, including telecommunications, payments, and electronic money solutions. His diverse background is complemented by degrees in Engineering, Law, and Business Enterprise, alongside his role as a registered Trans Tasman IP Attorney and fellows with professional engineering associations.

In summary, ISX Financial EU Plc's recent T2 RTGS access engenders monumental changes in its operational landscape, establishing a foundation for enhanced flexibility, reduced operational risks, and improved cross-border payment mechanisms. As the financial services industry continues evolving, ISX stands poised to leverage these capabilities for sustained growth and innovation.