Simplex and Ava Labs Conduct Joint Verification of Next-Generation Remittance and Settlement Network

Simplex and Ava Labs have conducted a proof of concept combining Simplex's stablecoin issuance and redemption system "Simplex Stablecoin" with Ava Labs' blockchain infrastructure service "AvaCloud" to achieve financial services-grade availability and low latency.

Currently, many financial institutions and companies domestically and internationally are considering commercializing stablecoins. However, commercialization requires service levels equivalent to financial services, and this high level of difficulty serves as a barrier to entry. In this proof of concept, the partners focused on availability and latency among the barriers to starting stablecoin business. They verified improvements to both infrastructure and application layers by combining Simplex's solutions "Simplex Stablecoin" and "Simplex Fourth" with Ava Labs' blockchain infrastructure service "AvaCloud" and "Avalanche L1."

As a result of the verification, the partners confirmed that processing can be performed with high availability through redundant configurations including geographical distribution, while maintaining high throughput and low latency with finality in under 1 second. This demonstrates that both companies' solutions are effective even in use cases requiring both stability and high performance, such as payments and remittances, and provides significant support for expanding the functionality of "Simplex Stablecoin." Moving forward, both companies will continue to promote proof of concepts assuming specific use cases for the social implementation of stablecoins, and will strive to promote new market entry by many business operators.

Proof of Concept Overview

Verification Content

1. Achieving both high availability and high performance in stablecoin remittance processing
2. Practicality of business application operation triggered by completion of blockchain processing

Solutions Utilized

• Simplex Stablecoin: Stablecoin issuance and redemption system. Used as a business application serving as the starting point for remittance processing on the blockchain in this verification.
• Simplex Fourth: Web3 integrated platform solution. Responsible for private key management and remittance transaction signing in this verification.
• AvaCloud: Managed blockchain service that enables easy construction, deployment, and scaling of high-performance L1 networks. Used to build a dedicated Avalanche L1 for verification and utilize peripheral functions such as webhooks.
• Avalanche L1: Private chain using Avalanche's consensus algorithm.

Verification Results

Through this technical verification, the two companies demonstrated the following performance indicators and configuration stability achievements. This confirmed the feasibility of achieving a configuration that balances high throughput and low latency in instant settlement networks utilizing stablecoins.

• Throughput: Sustained over 1,000 transactions per second for a continuous period
• Latency: Average time to finality for token remittance transactions was under 1 second
• Configuration Availability: Even with multi-region redundant configurations, no significant performance degradation was observed in throughput and latency, maintaining processing performance stability even under high-load environments

Simplex Announces Stablecoin Issuance and Redemption System “Simplex Stablecoin”

Simplex has launched its stablecoin issuance and redemption system “Simplex Stablecoin.” Stablecoins are payment instruments that possess the characteristics of cryptocurrencies—enabling instant and low-cost transfers—while maintaining stability by pegging their value to fiat currencies. With the amendment of the Payment Services Act in June 2023, which defined stablecoins

Japan FinTech ObserverNorbert Gehrke