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Red Days in Banking and How MoneySwitch Solves the Issue


Cross-border payments face various challenges: low speed, high cost of a transaction, restricted operating hours, and foreign exchange risk. These difficulties are aggravated by the fact that money effectively sleeps during the numerous ‘red banking days’.

For example, in England over the next 12 months, there will be 240 working days, 100 weekend days, and seven public holidays, which means that 107 days of the year will be ‘red banking days’, with no transactions processed.

International transfers are particularly affected. For example, a sender transfers $500 to another country. His bank receives this instruction, converts the native currency to USD, sends the message via the SWIFT network to a correspondent bank, this bank converts the USD to native currency, and credits the funds to the appropriate account. Because of variations in trading times and time-zone issues, this takes between one to five business days, exposing the sender to foreign exchange risk as currency values fluctuate.

The SWIFT network acts as the messenger, sending instructions to financial institutions globally, and the banks act as the relay points executing the instructions. Often transactions are sent through multiple intermediaries making cross-border payments slower than their domestic counterparts.

How MoneySwitch Overcomes Red Banking Days

This temporary freeze of banking activity on Red Banking Days detrimentally affects cross-border payments by causing longer transaction processing time from payer to payee. This is unacceptable in the 21st century’s global on-demand economy. Different time zones and operating hours also need to be considered when making cross-border payments through corresponding banks. It is necessary for a financial alternative that allows for cross-border payments to be made around the clock.

Understanding What MoneySwitch Does

MoneySwitch enables real-time connectivity between cross-border payment providers and uncollateralized liquidity at predetermined interest rates. It will allow payment providers to move away from the SWIFT-restricted pre-funding model and towards a decentralized real-time financing strategy. This results in less foreign exchange risk, transfer delays, stranded liquidity, and, most importantly, increased customer satisfaction. MoneySwitch increases the availability of liquidity to cross-border payment providers via Decentralized Finance (DeFi), while simultaneously providing lenders with additional revenue options on stable assets.

During Red Banking Days funds remain dormant. Transactions are not processed and are thus exposed to greater foreign exchange risk when executed at a later date. MoneySwitch’s mission is to leverage the potential of DeFi to transform cross-border payments. MoneySwitch provides uncollateralized real-time liquidity for cross-border payment providers., removing one of the most significant barriers to cross-border payment providers using SWIFT: the requirement of pre-funding.

Blockchain technology is revolutionizing the speed and efficiency of transactions allowing for assets to be sent anywhere globally within minutes. MoneySwitch utilizes blockchain technology and thus is always operational. There are no such things as red days, no time zones, or opening hour limitations. MoneySwitch offers unrestricted access to on-demand liquidity for cross-border payment providers.

MoneySwitch leverages the power of DeFi to improve services offered by traditional finance services. Cross-border payment providers will gain near-instant global access to liquidity and this capital can be moved freely to meet liquidity needs worldwide as opposed to idling dormant in a foreign account. The impact will be to push towards real-time settlement capability vastly reducing foreign exchange risk and the capital barrier entry required for pre-funding.

Decentralized On-Demand Funding With MoneySwitch

MoneySwitch enables cross-border payment providers to increase client acquisition by offering a more efficient and dependable service, by delivering real-time liquidity to cross-border payment providers regardless of time zones, trading hours, holidays, weekends, or other “red” banking days. It allows cross-border payment providers to reduce tied capital in pre-funding accounts, thus, freeing up money for business expansion.

With real-time access to uncollateralized liquidity, cross-border payment providers can adopt an on-demand model, in which liquidity for B2B settlements and cross-border payments is provided when needed as opposed to in advance.


Attempting cross-border payments on Red Banking Days leads to slow international transfer settlement time. MoneySwitch provides a panacea through the deliverance of real-time access to liquidity for cross-border payment providers that is unimpeded by the normal barriers faced by the SWIFT network and banks such as trading hours, timezones, weekends, and holidays. MoneySwitch spearheads the move away from the pre-funding approach toward on-demand liquidity. By accessing liquidity on MoneySwitch cross-border payments providers face less foreign exchange risk and can offer faster settlement time to their customers.

For the most up-to-date information about MoneySwitch, follow us on Twitter, Discord, Telegram, and our website.




MoneySwitch is a Liquidity-As-A-Service Platform offering uncollateralized lending to cross-border payment providers and is governed by MST holders.

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