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Mozrt Inc. — ILF Grant Final Report

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Memories from the 2023 Summit!

Brief Project Description

The purpose of our grant was two-fold: integrating Mozrt to Rafiki, and exploring the need to charter a bank to serve ILF community members.

Our mission is to provide accessible, affordable, and responsible financial services to create opportunities for fintechs, as well as individuals who are underserved by the existing financial system

Project Update

Successfully completing the Rafiki integration, Mozrt has delved into understanding the ILF community's needs, leading to the proposition of a multi-bank strategy.

Engaging with numerous companies in the Interledger ecosystem revealed their diversity in geography, business models, and focus. Through in-depth discussions with a number of these companies, Mozrt identified common challenges with U.S. banking, such as long timelines (measured in many months to years), unclear compliance requirements, limited products, opaque decision-making, and limited support. Our proposed multi-bank solution aims to resolve these issues, offering quicker access to global banking through a simplified integration process.

Mozrt's multi-bank approach aims not only to offer banking services to its customers but also to serve as a central hub connecting various banks with businesses. This strategy offers remarkable flexibility in an industry known for its rigidity. Should one bank adjust its risk tolerance and limit transactions with a business, another bank stands ready to accommodate the flow of transactions, ensuring continuity and reliability.

Project Impact & Target Audience(s)

Our project so far has been an engaging experience, and has allowed us to truly dive into the Interledger world. Some of the highlights include:

  • We have completed our creation of a local Rafiki instance
  • We have completed an extensible interface that demonstrates our API’s capabilities. Functionality includes:
  • UI can be customized by client
  • Payment pointers are considered a first-class payment method, on par with ACH, SWIFT, Fedwire, etc. with no additional restrictions
  • Users can send money via payment pointer, ACH, or Fedwire
  • Users can create beneficiaries as Interledger-enabled
  • Users can screen interledger entities in line with regulatory and compliance standards
  • We have enabled all Mozrt-ecosystem entities so that they are automatically assigned a payment pointer.
  • Funds are deposited into the client’s bank account and available immediately
  • Clients may customize their payment pointer
  • We have undertaken various marketing initiatives, including social media posts and boosts.

While we have begun the process of consulting with knowledgeable partners to start the work of chartering a bank, our multi-bank strategy has meant a slight pivot in activities.

Progress on Objectives, Key Activities

We have made incredible progress on our objectives, with key accomplishments here:

  • Initial Design and integration plan complete.
  • Discovery sessions begun.
  • Conversations with ILF engineers (Sabine) complete.
  • MFX UI with payment pointers development begun
  • Charter - Initial investigation complete
  • Rafiki-Mozrt Integration - Planning complete, Discovery complete. Integration begun.
  • MFX UI with payment pointers development continues
  • Conversations with Fynbos Rafiki developers underway.
  • Charter - In-depth conversations with advisors at the federal reserve and FDIC. Introductions and initial conversations with specialized accounting and legal firms to explore potential acquisition targets.
  • Testing sessions begin.
  • Demo of MFX UI with payment pointers ready
  • Interledger Summit attended
  • Demo and explainer complete:
  • Rafiki-Mozrt - Testing phase begun
  • Creation of an improved KYC model for payment pointers -
  • Entered into an MOU with Cheeri

Communications and Marketing

A demo of our services is here, envisioned as a simple UI over our API capabilities:

What’s Next?

We are looking forward to standing up and enabling multiple bank partners.

Mozrt’s proposed multi-bank strategy is to not only provide banking services for Mozrt customers; rather, it’s to act as a hub for multiple banks to connect with businesses. This model provides extreme flexibility for clients - as one bank may change its risk tolerance and throttle transactions from a business, another bank is available for the traffic.

The approach allows for a fintech company to integrate “once” to the Mozrt platform and have access to multiple banks that can better support the needs of the fintech and provide redundancy.

We're looking forward to moving toward this multi-bank goal!

Community Support

We are looking forward to continued discussions with regulators, banking attorneys, and more for Mozrt Bank, getting our Rafiki node peered, and sharing our experience with the community.

Mozrt’s mission, to provide accessible, affordable, and responsible financial services to create opportunities for fintechs, as well as individuals who are underserved by the existing financial system, remains the same.

In partnering with multiple banks, Mozrt aims to weave open payments into its core technology, creating a diverse and robust ecosystem that benefits clients and partners alike.

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