TBD announces Yellow Card as first major participant using its open source protocol
AS part of efforts toward bridging traditional financial systems with the burgeoning world of Bitcoin, TBD, a branch of Block specializing in decentralized technology, has introduced an open source protocol to foster trust and liquidity across diverse financial landscapes.
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The platform dubbed: “tbDEX” it offers an open source liquidity and trust protocol facilitating seamless value exchange and transactions among individuals and institutions globally.
Its core innovation lies in enabling financial institutions to conduct verifiable, trust-based transactions without intermediaries.
In a release issued by the company, it said the open source protocol has seen its first adoption by Yellow Card, Africa's leading cryptocurrency exchange.
According to the COO of TBD, Emily Chiu, “the world today has both legacy payment systems and government currencies – as well as new, decentralized payment systems, currencies, and digital assets. tbDEX bridges these new technologies with established systems without requiring people to abandon the financial tools they use today.”
The release said tbDEX builds mutual trust between counterparties without an intermediary; it allows participants to negotiate directly with each other (or rely on mutually trusted third-parties to vouch for counterparties), and price their exchanges to account for perceived risk and specific requirements.
This trust, it said is established by, among other things, sharing credentials that securely convey information needed to satisfy regulatory requirements that apply in the participants' jurisdictions.
“At its core, tbDEX brings a layer of trust to exchanging assets. The internet is missing a standardized way to make trusted transactions between fiat currencies, bitcoin, stablecoins, or any digital asset, without the involvement of an intermediary,” the CEO of TBD, Mike Brock said.
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“Solving this problem without a third-party authority can reduce fraud and misrouted payments in a fairer way, which makes transacting easier and cheaper for everyone,” he added.
The release said “while tbDEX can facilitate many use cases, cross border payments and commerce are amongst the first that TBD is exploring. Earlier this year, Yellow Card built an implementation of tbDEX that facilitated the exchange of bitcoin and Kenyan shillings, deposited into an M-PESA account in real time.
This transaction used the tbDEX protocol to establish counterparty trust; negotiate the terms of the asset exchange; and establish compliance using digital sanctions credentials to fulfill Yellow Card’s legal and regulatory obligations.”