Akshay Naheta, known for steering SoftBank Group’s massive options bets on U.S. tech stocks, is set on a new pursuit- redefining global payment infrastructure. His startup, Distributed Technologies Research (DTR), aims to combine traditional banking and blockchain technology to revolutionize the global payments system- all while rooting out existing inefficiencies such as transfer costs, foreign exchange conversion charges, and settlement delays.
DTR’s pivotal technology, AmalgamOS, acts as a bridge between banks and blockchain networks. It’s robust enough to handle an array of operations, from merchant payments to treasury management in both traditional and stablecoin currencies. DTR has created an ‘international orchestration network,’ automatically facilitating transactions through the most efficient route- either traditional banking or blockchain rails.
The launch of DTR’s push into payments infrastructure could not have been more timely. As pressure piles on Visa and Mastercard over their 2-3% swipe fees, the introduction of the U.S.’ proposed Credit Card Competition Act may compel banks to offer more affordable alternatives to merchants.
Naheta’s fascination with payment infrastructure ignited through SoftBank’s acquisition of Fortress Investment Group in 2017, acquiring $20 million worth of Bitcoin. His exploration into blockchain technology inspired him to leverage his wireless communications background to overhaul payment networks.
Despite facing competition from existing players such as Wise, Ripple, and the global banking sector’s initiatives, Naheta perceives a significant opportunity to serve businesses like digital nomads, creator economy platforms, and enterprises spanning emerging markets.
Regardless of the high margins and network effects that barricade the payments industry, Naheta’s efforts are turning the tide against existing brontosauri. He points out “I really think that the retail customer is getting screwed on payments… And it’s not the fault of the banks. They are plugged into legacy systems and it’s very hard to turn a Titanic.”
The transformational journey of payments infrastructure has only just begun.
Original source: Read the full article on TechCrunch
