Crypto and Fiat Payments Platform Orbital Obtains Permissions from the Gibraltar Financial Services Commission to Operate as a Regulated Distributed Ledger Technology Provider and Electronic Money Issuer

Payments
24.10.2023 02:25 pm

Orbital, the crypto and traditional finance payments platform for global enterprises, has secured permissions from the Gibraltar Financial Services Commission (GFSC) to operate two separate entities, namely Pay Perform Digital Limited (PPDL) as a Distributed Ledger Technology (DLT) Provider and Pay Perform Gibraltar Limited (PPGL) as Electronic Money Issuer (EMI) in the jurisdiction. Orbital is the first group to receive both DLT and EMI permissions in this jurisdiction.

The Electronic Money Issuer (EMI) permission allows Orbital (specifically PPGL) to offer customers e-money issuance, distribution and redemption services in the jurisdiction of Gibraltar. PPGL will start its operations by offering e-money accounts in GBP. This means that users can exchange e-money within the payments system, and store e-money in their wallets indefinitely. Both PPGL and PPDL is under the ongoing supervision of the GFSC, which imposes regulatory principles and requirements that must be adhered to in order to ensure compliance.

Orbital Group, based in London, Tallinn and Gibraltar, provides a range of traditional payment and global FX solutions to corporate clients exclusively and sets itself apart by also offering licensed crypto payment services, focusing on the business use cases for stablecoins in cross-border payments.

Following a first institutional capital raise of £5M led by Golden Record Ventures, and a record-breaking month in August in which it processed £250M of combined payments across the UK and Estonian group entities, the addition of DLT and EMI permissions mark another major milestone for Orbital.

Orbital already has authorised entities within its group, namely Pay Perform Limited in the UK authorised by the Financial Conduct Authority as a payment institution, and Pay Perform OÜ licensed as a virtual currency service provider by the Financial Intelligence Unit in Estonia.

In 2018, Gibraltar became the world’s first jurisdiction to enact purpose-built legislation in support of distributed ledger technology. The DLT legislation provides a framework for local companies to operate a blockchain-focused business securely and in compliance with industry best practices. Permissions are granted by the Gibraltar Financial Services Commission (GFSC) based on the ten core principles of the Distributed Ledger Technology Regulatory Framework, including fair communication with customers, working with honesty and integrity, safeguarding of customers’ assets and effective corporate governance.

Combined Fiat and Blockchain Payments

Orbital combines fiat and crypto business accounts to enable traditional, global enterprises to integrate stablecoins and traditional currencies, into existing payment flows. Its APIs further act as an embedded finance solution for stablecoin payments.

Orbital allows companies to accept cryptocurrency payments from customers, off-ramp into traditional fiat currencies, and settle into IBAN accounts in minutes. Customers can now access new emerging markets instantly, without needing a physical presence or a domestic bank account, by leveraging blockchain rails. This makes Orbital particularly valuable for global enterprises with exposure to emerging markets.

Chris Mason, CEO of Orbital, comments: “Soon enough, all global corporates will need a single solution for both fiat and blockchain payments. Orbital has been built by a team that deeply understands the complex and ever-changing needs of large enterprises, and our expertise in both traditional finance and crypto means that we are uniquely positioned to serve their demands.

“Gibraltar led the world in recognising the need for specific legislation and regulation around DLT, and has marked itself as a leading virtual assets and blockchain centre. We are proud and thankful to have been accredited with both DLT and EMI permissions by the GFSC to continue Orbital’s work providing both traditional and crypto payments for global enterprises.”

Nigel Feetham, Minister for Financial Services at HM Government of Gibraltar, comments: “Gibraltar has embraced the power of distributed ledger and e-money technology, creating an environment that nurtures innovation, provides regulatory clarity, and upholds market integrity. Orbital, which operates a Gibraltar office, is championing responsible integration of payments and blockchain technologies; firms that offer secure, efficient, and transparent blockchain payments are more than welcome in Gibraltar.”

Corporate Crypto Circumspection

According to hedge fund managers Brevan Howard, on-chain payments in stablecoins reached $11 trillion over the past year alone, almost surpassing the payment volume of Visa ($11.6tn), illustrating the immense size of the market. Deloitte’s Global Blockchain Survey reveals that 80% of senior executives believe that digital assets will be important to their respective industries in the next two years. Despite this understanding, corporates have been slow to adapt because of a lack of internal knowledge and a mistrust of the industry.

Payments in stablecoin are becoming more normalised for businesses operating globally because they offer significant benefits for cross-border low-value C2B and high-value B2B payments, especially when an emerging market is involved. Although there is currently a plethora of tools available for this, many larger businesses and corporations have struggled to find an overarching solution that doesn’t upset existing banking relationships.

Multi-Asset Payments on a Single Platform

Orbital’s industry-first product bridges the gap between traditional finance and digital asset treasury solutions, offering a regulated, secure and frictionless experience for multinational corporates. It acts as a single point of access to a range of tools needed to run a treasury operation, including multi-currency accounts, foreign exchange, global payments and digital asset custody. Orbital also offers its crypto payment rails via APIs, giving online merchants the ability to embed crypto payment into their product or service.

Orbital has over 100 clients processing £250M of value every month. Orbital’s headcount is 95 globally, with three offices across London, Estonia, and Gibraltar.

Important

Pay Perform OÜ and Pay Perform Digital Limited are not registered as cryptoasset service providers by the Financial Conduct Authority and therefore their services pertaining to cryptoassets are not available in the UK. Orbital's crypto-related services are directed and intended for qualifying non-retail persons outside the UK.