ARYZE, the full-reserve bank built to operate at a fraction of the traditional risk, using regulated cloud-native banking software, blockchain, and smart contracts, is about to launch its stablecoin RYZE. Their “digital cash” stablecoins represent almost entirely credit risk-free backing with central bank deposits and short-term central bank-issued assets based on the concept of full-reserve banking.
ARYZE Digital Cash, issued as a stablecoin, can exist as a cryptographically secure token linked to national money that will benefit quick and immutable transactions through distributed ledgers. Yet, also the non-volatility of fiat currency, providing the best of both worlds.
The team comprises CEO Jack Nikogosian and Co-Founder Morten Nielsen (previously at JP Morgan and UBS) alongside key foundational partners like IBM, Episode Six, and Onfido. Together, they provide a solid technical solution to solve complex problems within the financial system surrounding transparency and financial exclusion.
“ Our idea of not lending money is not a new thing. If you search for the Chicago Plan, you will find that after the Great Depression, a lot of economists theorized a concept of full-reserve banking and how this would look”, says Jack Nikogosian, CEO of ARYZE.
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Nikogosian adds, “This plan has been revised, again and again, latest in 2012 by the IMF, where they ran some simulations using modern solutions to see how this could look and if it would work, and it did. We are now replicating it with ARYZE.”
The collateralization method is based upon insuring deposits through short-term government bonds and bills and direct deposits into central banks, thus reducing credit risk. All deposits in MAMA (ARYZE´s app ecosystem) are Digital Cash and are shown and represented as USD, EUR, GBP in the app.
ARYZE will deliver interoperability to the blockchain and make bank IOUS fully programmable. It presents an innovative solution to tackle credit and market risk, financial exclusion, remittances, and money laundering.
In today’s financial world, our core money is at risk when deposited in a financial institution. Moving money deposits and transactions away from traditional banking fractional lending systems to a full reserve platform where the vast majority of the funds are placed 1 to 1 in central bank assets is the way forward.
ARYZE completed the first successful ICO in Danish history, raising 1.6 million USD. Now they are ready to complete a $15 million round in a unique and innovative hybrid model that offers a combination of a traditional equity investment and regulated token financing.