Royal Canadian Mint Digital Currency Product Acquired by Fintech Startup nanoPay
The Royal Canadian Mint has spun off its digital currency technology, MintChip, by selling it to a private company. A wholly owned subsidiary of nanoPay, The Royal Canadian Mint and Loyalty Pays Holdings Corporation, has acquired all the assets of MintChip.
MintChip is designed to be regulatory-friendly at the same time as having technological benefits of digital currency. The digital currency platform enables quicker transactions at a fraction of the cost of other digital payment alternatives , but also supports compliance with regulatory standards, including anti-money laundering (AML) and know your customer (KYC) rules.
Bob Zintel, Senior Director of Finance at The Royal Canadian Mint, commented:
This transaction, which was conducted through an open, transparent divestiture process, allows MintChip to move to its natural next step of commercialization in the private sector. Canadians can now look forward to the evolution of MintChip as nanoPay explores the full potential of this digital payment technology in the global marketplace
Laurence Cooke, Founder & CEO of nanoPay, added:
Digital currency is inevitable and our newly-acquired MintChip platform delivers a digital cash future to consumers, businesses and governments today. Digital cash will transform payments globally, from the unbanked to the largest financial institutions, and MintChip will help easily transition to the reality of cashless payments.
MintChip uses secure asset stores to move funds, which can be denominated in any recognized national currency, between parties without an intermediary and can process transactions both online and offline. This reduces the cost and risk of financial transactions by enabling real-time settlement with no recourse and non-repudiation.
The Mint has reported that the MinChip platform was successfully tested in a six-month internal trial and has been granted five patents, with another five applications in process. The platform is live and processing transactions today, and will be commercially deployed in the coming weeks.
nanoPay indicated that it is focusing on developing partnerships with central banks, commercial banks, telcos, acquirers, retailers, as well as developers and POS providers, that will further expand the utility and acceptance of MintChip.
Founded in 2012, nanoPay is an early stage Fintech company based in Toronto that provides loyalty and payments solutions for retail and ecommerce merchants.