ScienceWerx
FinTechAmericas · MENA

U.S.–Saudi FinTech

Accelerating Blockchain Adoption in Cross-Border Payments

A joint ScienceWerx task force between U.S. and Saudi financial institutions reduced cross-border transaction costs by 40% through a purpose-built blockchain layer.

January 20257 min read
U.S.–Saudi FinTech
40%
Transaction Cost Reduction
<4 hrs
↓ from 3.2 days
Settlement Time
$480M
Pilot Transaction Volume
23
Companies Participating

The Challenge

Cross-border payments between the U.S. and Saudi Arabia were burdened by legacy SWIFT infrastructure, high intermediary fees, and settlement delays of three to five business days. For SMEs conducting international trade, these frictions represented both a cost and a competitive disadvantage.

The Solution

The ScienceWerx FinTech Task Force partnered researchers from MIT's Digital Currency Initiative with fintech engineers from Riyadh-based institutions to design a permissioned blockchain layer compatible with both the Federal Reserve's FedNow system and SAMA regulations. The protocol uses atomic swaps and smart contract-driven compliance checks to eliminate most intermediary steps.

The Outcome

After a 12-month pilot involving 23 companies and over $480 million in transaction volume, the protocol achieved a 40% reduction in per-transaction fees and reduced average settlement time from 3.2 days to under 4 hours. The Saudi Central Bank issued a regulatory sandbox license in Q4 2024 to allow continued scaling.

Partners & Collaborators

MIT Digital Currency InitiativeSAMAFederal Reserve (FedNow)SWx FinTech Task Force