How Ratio Works
The Problem
Asia's cross-border finance is fundamentally fragmented. Expensive legacy rails, regulatory misalignment across jurisdictions, and limited interoperability between payment systems lead to high costs and slow settlement for businesses and individuals.
A remittance from Singapore to Indonesia today can take 1–3 days via correspondent banking, cost 3–7% in fees and FX markup, and pass through multiple intermediaries — each adding latency, cost, and compliance friction.
The Solution: Stablecoin Orchestration Layer
Ratio's Stablecoin Orchestration Layer (SOL) is purpose-built, regulated middleware that unifies this fragmented landscape. With a single API integration, SOL abstracts local market complexity and provides end-to-end intelligent liquidity routing, optimised FX swaps, and instant cross-border settlement.
At a base level, SOL allows enterprises, builders, and users to transact and transfer between any form of money — seamlessly and cost-effectively.
SOL Architecture
Six Core Components
On-Ramp
Provides seamless, multi-partner fiat-to-stablecoin and off-chain-to-on-chain connectivity across regions, enabling compliant, low-cost money movement. On-Ramp partners (PSPs, banks, e-wallets) handle end-user KYC and convert fiat deposits into stablecoins that enter the SOL.
FX Engine
Delivers the most accurate, efficient, and compliant stable-to-stable FX execution with institutional-grade pricing and minimal spread. The FX Engine uses oracle-based pricing (Pyth + Orakl), a rules-based spread construction model, and inventory-aware mid-rate adjustment — mirroring how institutional FX dealer desks operate rather than an AMM curve. Zero AMM slippage, full auditability on-chain.
Liquidity Hub
Optimises liquidity sourcing and rebalancing across all pools to guarantee swap availability at the lowest possible execution cost. The three-tier pool architecture (Active, Reserve, Yield) combined with smart rebalancing triggers ensures deep liquidity while minimising external rebalancing costs.
Yield Engine
Maximises the return on enterprise treasury and float by deploying idle stablecoin balances into secure yield strategies with real-time redemption capabilities. Class B LPs earn both FX swap fees and yield profits, while Class A LPs are fully firewalled from yield risk.
Off-Ramp
Receives stablecoins from the FX Engine and converts them to local fiat via local rails — bank transfer, e-wallet, or card. Off-Ramp partners handle last-mile distribution in each market.
Communication Layer
Standardises and synchronises data exchange across partners, enabling reliable, interoperable settlement flows similar to a next-generation SWIFT layer. Uses ISO 20022-inspired message templates for bank info, beneficiary data, and transaction confirmations.
End-to-End Transaction Flow
A typical cross-border remittance through Ratio follows this path:
- User deposits fiat (USD) via an On-Ramp partner (bank transfer or e-wallet).
- On-Ramp converts fiat to stablecoin (USDT) and deposits into the SOL.
- FX Engine executes the swap — USDT is exchanged for IDRX at oracle-based pricing with institutional-grade spread (3–4 bps for USD-IDR).
- Settlement on Kaia — the swap settles atomically on-chain in < 1 second.
- Off-Ramp receives IDRX and converts to local fiat (IDR).
- User receives IDR in their Indonesian bank account or e-wallet.
Total time: seconds to minutes (vs. 1–3 days via legacy rails). Total cost: 3–6 bps (vs. 3–7% via legacy rails).
Key Use Cases
| Use Case | Description |
|---|---|
| Cross-Border Payments & Remittances | Instant, low-cost movement of value across Asia by bypassing expensive legacy rails |
| Merchant Settlement & Global Payouts | Single solution for merchants and PSPs to settle payments in diverse regional currencies |
| Liquidity Pool for Local Stablecoins | Deep, localised liquidity for optimised FX swaps and guaranteed instant settlement |
| Stablecoin Acceptance for Merchants | Merchants compliantly accept payment in various stablecoins, instantly converting to local fiat |
| Yield for Local Stablecoins | Maximise return on enterprise treasury by deploying idle balances into secure yield strategies |
| On-Chain FX | Near real-world rates with the industry's lowest spreads for both on-chain and off-chain exchanges |