BABB, a socially focussed P2P mobile banking platform, today announces the ReDeFi project – a new decentralized FMI (Financial Market Infrastructure) platform that redefines our current financial system, by merging the reliability of traditional finance with the immutability of blockchain technology. ReDeFi eliminates many of the traditional barriers to financial inclusion, ushering in a new era of enhanced transparency, efficiency, and affordability in financial transactions.

Central to ReDeFi's vision is the Onchain Money model, a first-of-its-kind tokenized deposit system that preserves the Singleness of Money principle (the idea that all types of money should carry equal worth in a given denomination, be universally recognized for transactions, and be freely exchangeable with any other currency form without diminishing in value). Onchain Money distinguishes itself from the volatility of cryptocurrencies and the limitations of stablecoins by offering a blockchain-based representation of fiat currencies like GBP, directly mirroring funds in traditional bank accounts without necessitating token issuance.

Onchain Money integrates smart contracts into the existing infrastructure that banks and financial institutions use, providing value and convenience, while Onchain Money can be sent to and received from any supported bank (local or overseas) using traditional account details.

With Onchain Money, transactions are reduced in cost, occur seamlessly and near-instantaneously around the world, and fully adhere to regulatory standards. The platform also eliminates the need for middlemen, such as banks and brokerage firms, therefore further reducing transaction costs. 

Furthermore, Onchain Money transaction fees are also transparent and verifiable on the blockchain, regardless of geographical location or currency. Unlike today’s financial systems, where fees vary based on currency and merchant bank location, Onchain Money utilises its own blockchain network to solve that problem. This eliminates the complexity and extra costs associated with cross-border transactions, making financial exchanges simpler and more cost-effective for all parties. Currently remittance costs average 6.8%, disproportionately affecting communities in developing economies.

ReDeFi will be launching its layer-1 blockchain with Onchain Money to follow, before the IDO and token sale this year.

ReDeFi and Onchain Money is the brainchild of BABB, a fintech mobile banking platform established in 2018 that promotes financial inclusion and social impact by enabling cost-effective financial solutions.

Rushd Averröes, Founder and CEO, ReDeFi, said:

“At the heart of ReDeFi is Onchain Money, a new model that blends traditional banking with the efficiency of blockchain technology, thereby reforming and augmenting - rather than replacing - existing monetary systems. We are hugely excited about the potential of this new model for everyday people, businesses, banks and governments around the world.”