Mellanox founder backs new SWIFT alternative – The Australian Jewish News
The founder of the Israeli company Mellanox Technologies, sold to Nvidia for the colossal sum of 7 billion US dollars in 2020, and the former CEO of the Israeli telecommunications giant Bezeq announced on Monday a new investment in the fintech start-up Hedgewiz, an Israeli company that seeks to combat currency transfers.
Hedgewiz, founded in 2016, has offices in Tel Aviv and London. The company has developed a software platform that it claims handles currency transfers and global payments for business customers more efficiently than banks, which rely on the SWIFT global banking payments system, an age-old method of 50 years for the execution of financial transactions used by more than 11,000 financial companies. establishments around the world. The system has been in the spotlight in recent weeks as governments have sought to sanction Russia for its invasion of Ukraine by cutting off Russian banks from SWIFT, hampering their transaction capabilities.
Hedgewiz was created by Pavel Soifer, an expert in financial and currency risk management, Dr. Adam Reuter, also founder of financial risk management firm Financial Immunities, and Renan Mittelpunkt.
“The field of international currency transfers to business customers has always been considered outdated, very complex, suffers from errors in transferring money to the wrong places, extremely high transaction costs… and a lack of transparency “, the company said in a statement. The SWIFT system, he said, “the heart of the global system is already 49 years old. Valuable time is wasted on operations that [are] meant to be quick and simple.
Soifer, who serves as CEO, said Hedgewiz’s solution offers international multi-currency management via “liquidity providers”, or supervised financial entities specializing in currency transfers, which allow companies “to make currency hedging transactions if necessary and also to accept and pay global payments.
“We also have a solution for the case as it is happening now in Ukraine: the employee and the employer open an account on the platform so that the Ukrainians can have access to the money even if the Russians close the banking system to them local,” he added.
Reuters said the Hedgewiz platform “knows how to produce optimization by finding the fastest and cheapest route to transfer funds directly to the destination country through the interface with our partners”.
Eyal Waldman, the founder of Mellanox who became Hedgewiz’s biggest investor and also joined the company’s board, said companies around the world would benefit from the startup’s solution.
Stella Handler, former CEO of Bezeq, said the Israeli startup “provides a solution to market failure in the area of moving money between businesses and entities in international markets, with the potential to grow at raised”. Handler served as CEO of Bezeq from 2013 to 2018, stepping down that year amid a major corruption probe also called Case 4000 that also ensnared former Prime Minister Benjamin Netanyahu. In Case 4000, Netanyahu allegedly advanced regulatory decisions as communications minister and prime minister that hugely benefited Shaul Elovitch, Bezeq’s former majority shareholder.
According to Monday’s announcement, Handler invested $150,000 in Hedgewiz and Waldman contributed half a million. Other investors in the company include Shabtai Adlersberg, chairman and CEO of Audiocodes, which trades for around $1 billion on the Nasdaq, and entrepreneur Yaakov Kotlicki, who sold the home security systems company Visonic in 2011 for around $100 million.
Hedgewiz said he currently works with 100 international companies, most of them European.
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