Stellar Network To Power New Savings API Launched By Wyre
Stellar Development Foundation (SDF) CEO, Denelle Dixon, celebrated the result of a partnership with the payment infrastructure Wyre. This company has released a new Savings API for FinTechs to have access to a yield earning and savings product.
So exciting to see Wyre offer this functionality to the Stellar network. Congrats to the @sendwyre team on this launch! https://t.co/OV6TnOqbJI
— Denelle Dixon (@DenelleDixon) June 3, 2021
Based on the Stellar Network and its version of the stablecoin USD Coin (USDC), created by the CENTRE consortium. The API provides an annual yield much higher than the one offered by most traditional bank accounts backed by the U.S. dollar.
This average has been estimated at an 0.06%, according to data provided by the SDF. With the Wyre Savings API, institutional and corporate clients receive more yield for their capital, can access tools for treasure management and can power earnings products for their clients.
Stellar Supports Growth Of Blockchain-Based Savings And Payment Features
The API has been designed to be an easy on-ramp to those Stellar-based assets, such as stablecoin USDC, and provided a “seamless” Savings API, according to an official post published by the SDF. Ioannis Giannaros, Wyre CEO, said the following on the cooperation:
With this Savings API, we’re giving FinTechs faster access to deposits and the confidence of doing business with a licensed money transmitter. This is a huge win for early stage FinTechs looking to quickly expand the functionality available to their users– particularly those seeking to accept funds and offer stable currency savings with earning capability in the developing world.
Giannaros said to be excited about this launch and the possibility for their clients to leverage its savings functionality with yield payouts.
The Stellar Development Foundation and Wyre have been working together for quite some time. At the beginning of 2021, the SDF’s Enterprise Fund made a $5 million investment in Wyre.
The organization believes that this new API, in combination with the cost-efficient Stellar-based rail for financial services, will power a new set of products, such as the one launched by Wyre.
The Wyre Savings account will make monthly payments of its earnings. This can be compound in value, the SDF clarified, and feeless to access the on-ramp fiat value. SDF’s CEO added:
As a Stellar anchor, Wyre’s industry-leading payment APIs — including its savings functionality — provide simple on- and off-ramps to Stellar USDC and high-value offerings to partners in developing countries. By making it easy for FinTechs to accept funds and offer their users a way to earn on savings, Wyre is simplifying and enriching development on Stellar and helping to further strengthen the network as a whole.
Stellar’s partner has operations in over 50 countries and process over $5 billion ins transfers executed since 2013. In the U.S., Wyre has a licensed to operate as a money transmitter in 27 states. One of the first companies to use their Savings API is the FinTech Airtm, a company with a great presence in Latin America.
Users in this region will be able to save money and accrue earnings with the Stellar USDC. Also, it will give many unbank users the option of keeping their savings in U.S. dollars. Josh Kliot, Head of Product and Co-Founder at Airtm said:
Using Wyre’s Savings API and Stellar USDC to provide our Latin American clients the ability to accrue earnings has been a tailwind for incentivizing their funds to remain as dollars instead of withdrawing to devaluing local currency.
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