Finstack-XR

FinStack XR—A low-code, compliance-ready fintech platform built on XRPL and EVM sidechains to reduce costs, shorten time-to-market, and automate KYC/AML.

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Inspiration

I know of startup founders who take a long time and incur high startup costs building their own startups. This made me realise that building a fintech product is notoriously expensive and time-consuming due to complex regulatory requirements and high development costs. We wanted to break down these barriers by combining XRPL’s low-cost payments with the flexibility of an EVM sidechain. The end goal? Empower early-stage startups to launch services like cross-border payments, lending, and insurance in weeks instead of months.

What it does

FinStack XR provides a low-code platform that automates critical fintech functionalities—from stablecoin-based cross-border transfers to lending and insurance modules—while simplifying KYC/AML compliance. Through a web-based admin portal, founders can:

  • Choose pre-built fintech modules (Payments, Lending, Insurance).
  • Deploy smart contracts automatically on an EVM sidechain with minimal coding.
  • Integrate with XRPL for near-instant, cost-effective settlement.
  • Monitor transactions and ensure compliance via a built-in AML alerting system.
  • This dramatically reduces development costs and speeds up time-to-market for new fintech products.

How we built it

Architecture

  • Backend: Node.js + Express for business logic and API endpoints.
  • Smart Contracts: Solidity contracts on an EVM sidechain for compliance checks and escrow functionalities.
  • XRPL Integration: Used xrpl.js to process stablecoin transactions with minimal fees and near-instant finality.

Compliance Layer

  • A smart contract–based whitelist that checks if users are KYC-verified before allowing any transfers or lending actions.
  • A simplified AML monitor that flags large or suspicious transactions, stored on-chain for auditability.

Low-Code Admin Portal

  • React/Next.js frontend, allowing fintech founders to drag-and-drop modules and configure compliance thresholds.
  • Deployed on Vercel for quick iteration and demonstration.

Challenges we ran into

  • Managing EVM version mismatches (Ethers v5 vs. v6) during smart contract deployment.
  • Ensuring the KYC process remains secure, yet frictionless for end users.
  • Designing a modular system that can scale from simple cross-border payments to more advanced lending/insurance solutions.

Accomplishments that we're proud of

  1. End-to-End Automation: We successfully automated the entire flow—from user onboarding (KYC) to final stablecoin transfers—under a single platform.
  2. Rapid Deployment: Showcased how a new fintech use case (e.g., cross-border payments) can be configured and live on testnet within minutes.
  3. Robust Compliance: Implemented a reusable AML mechanism that highlights high-risk transactions, paving the way for deeper integrations with real-world KYC providers.

What we learned

  • How to integrate XRPL for near-zero transaction fees and fast settlement.
  • Automating KYC/AML checks using Solidity smart contracts on an EVM sidechain.
  • Streamlining the user journey by providing pre-built or templated modules for core fintech functionalities (like lending or escrow).
  • The importance of a low-code approach so non-blockchain developers can configure their fintech products quickly.

What's next for Finstack-XR

  • Advanced Lending & Underwriting: Integrate AI-based credit scoring to offer dynamic interest rates and risk profiling.
  • Compliance Marketplace: Let users plug in various KYC/AML providers or local regulatory modules for specific regions.
  • Multi-Chain Interoperability: Add bridging features to interact with popular chains like Ethereum, BNB Chain, or Polygon.
  • Developer SDK: Provide a robust SDK and CLI tools so fintech teams can customize or extend modules with minimal overhead.

Built With

  • aml
  • and-deployment-of-solidity-contracts.-(optional)-mysql/postgresql-or-firebase:-storing-user-profiles
  • and-escrow.-xrpl.js:-integration-with-the-xrp-ledger-for-near-zero-transaction-fees.-react-or-next.js:-low-code-admin-portal-where-founders-configure-their-fintech-modules.-hardhat:-development
  • express.js
  • kyc-statuses
  • node.js
  • solidity
  • testing
  • xrpl
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