Simplex and Ava Labs Turbocharge High-Speed Stablecoin System in Game-Changing Test

Stablecoins just got a nitro boost—Simplex and Ava Labs just demoed a settlement system that makes traditional finance look like dial-up.

The Need for Speed

Forget waiting hours for cross-border transfers. This partnership leverages Avalanche's subnet architecture to process stablecoin transactions at speeds that leave legacy banking in the dust. No more intermediary delays—just near-instant finality.

Why It Matters

This isn't just another tech experiment. It's a direct shot across the bow of sluggish payment rails. By combining Simplex's fiat onboarding expertise with Ava Labs' high-throughput blockchain, they're creating a seamless bridge between cash and crypto—without the typical bottlenecks.

Of course, Wall Street will probably still find a way to charge a 2% 'processing fee' for the privilege.

The bottom line? Stablecoins are about to get a whole lot more useful—and traditional finance just got served notice.

What Was Tested?

The test focused on two main goals. First is to ensure that stablecoin transfers are both highly reliable and processed quickly. Another one is to verify that business applications continue to function smoothly once transactions are completed on the blockchain.

For the test, they have used several key tools.

• Simplex Stablecoin handled the issuance and redemption of stablecoins and sent remittance transactions on the blockchain.
• Simplex Fourth controlled private keys and signed remittance transactions securely.
• AvaCloud provided a managed blockchain service to build and run high-performance networks.
• A custom AvalancheL1 network was created with additional features like webhooks. AvalancheL1 itself is a private blockchain that operates using Avalanche’s consensus algorithm.

The results of the test showed strong performance and reliability. The system processed over 1,000 transactions per second in a certain time period. Also, the average transaction finality time was just under one second. 

The system performed well with backups in multiple regions. It had good throughput and consistent processing under heavy load. Both firms intend to keep experimenting with particular use cases to further develop the system and get more businesses on board. 

The collaboration aligns with Japan’s broader efforts to integrate stablecoins into the financial system. In April, Japan’s Sumitomo Mitsui Financial Group (SMFG), which owns SMBC, also announced to launch its stablecoin in partnership with Ava Labs and Fireblocks. 

Also Read: Ripple Joins SBI Holdings to Roll Out RLUSD Stablecoin in Japan