Correspondent banking
Correspondent banking is the arrangement in which one bank (the correspondent) holds an account for and provides services to another bank (the respondent), so that banks without a direct relationship can still move money between each other. Most cross-border payments today travel through chains of correspondent accounts, with a SWIFT message instructing each hop.
By Nikhil Srinivasan, Founder & CEOLast updated July 2026
Mechanically, the arrangement runs on mirrored accounts: the respondent’s account at its correspondent is its nostro ("ours"), and the correspondent calls the same account a vostro ("yours"). Money does not physically cross borders — banks debit and credit these accounts, and a SWIFT message instructs each adjustment.
Each hop in a correspondent chain adds time, fees, and a fresh compliance review — the payment only moves as fast as the slowest bank’s checks. And because correspondents carry the compliance risk of every respondent they serve, many have "de-risked" out of whole regions, leaving fewer, more congested paths for the corridors that need them most.
This is the structural problem Infinite’s network addresses: instead of re-vetting a counterparty at every hop, a counterparty vetted once on the network is vetted for every participant, and Transfer Routes can route around slow paths across SWIFT, US rails, stablecoins, and FX automatically.
Frequently asked questions
What are nostro and vostro accounts?
Two views of the same correspondent account. A bank’s account held at another bank is its nostro ("ours"); the bank holding the money calls it a vostro ("yours"). Cross-border payments settle as debits and credits across these accounts rather than as money physically crossing borders.
How is an intermediary bank different from a correspondent?
A correspondent bank maintains a standing account relationship with another bank and provides ongoing services across currencies. An intermediary bank is whichever bank a specific payment passes through when the sender’s and beneficiary’s banks lack a direct relationship — a role usually filled by a correspondent.
What is de-risking in correspondent banking?
Correspondents carry the compliance risk of every respondent bank they serve, so many have exited whole regions rather than manage it — leaving fewer, more congested paths for the corridors that need them most. Cross-border payments
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