OKLink incorporates Vietnam into cross-border remittance network
It is understood that incoming remittances account for 6.8% of Vietnam’s GDP. It is a market with huge potential for adopting a timely, low-cost cross-border remittance solution. OKLink network is designed to offer such a solution. Within the OKLink blockchain network, companies in Vietnam may conduct bank transfer, cash collection and mobile wallet and other services. Single transaction is limited to under US $ 10,000 with transaction fee standing at 0.5% of the total remittance +5000 VND. Compared to traditional remittance channels, OKLink now offers a more convenient and favorable remittance network.
According to a press release by OKLink , the receiving party can cash in through the bank account, cash wallet or mobile wallet. Each channel has its own settlment schedule. OKLink claims to be able to transfer funds between 27 banks to any Vietnamese account within 30 minutes. According to fintech companies, the Vimo ATM card, which has 22 banks and regional mobile wallet, can achieve almost real-time settlement transfer in 10 minutes.
OKLink strategy director Jack C. Liu said in a statement:
The ability to provide this quick and cheap transfer to Vietnam is important to OkLink’s partners and to the economic development of Vietnam.
OKlink network conducts the money transfer through the issuance of digital token: OK Dollar, serving mostly for licensed payment processor and remittance companies. Financial institutions that join the OKLink network may achieve point-to-point currency payment and redemption among the members. The issuance of OK Dollar is based and tightly connected with US dolla. OKLink has set up a trust account through overseas trusts, allied members may obtain OK Dollar via USD deposit into the trust account. This mechanism is designed to eliminate the security concerns of the financial institutions for the platform. OKLink also has a Alipay-like mechanism for settlement. Downstream payment agencies will deliver advance payment to the recipient, and gain access to the money from the upstream senders with multi-sig technology. Such design may help to avoid the counterparty risk.
The number of Asian countries that could be accessed via OKLink by Vietnam is increasing. For recipient countries outside of Asia, Brazil, Canada and the European Union are among the list.