Crunchfish (CFISH) Status update summary

Market opportunity and architecture

• Offline payments address an inevitable need amid recurring connectivity and infrastructure disruptions; acceptance is essential for payment systems to function.

• Architecture determines where money and risk reside, shaping system design and credit risk.

Governed offline model and reservation-based architecture

• Payments can occur offline within system-defined limits while verification, settlement, funds and ledger authority remain within the underlying payment system; funds are not transferred to devices.

• Offline spending capacity comes from centrally governed reservations based on available balances and approved credit capacity; reservations remain operational balances on regulated institutions’ balance sheets and may support stable balances or float, subject to product design, user terms and regulatory treatment.

• Unlike immediate offline models, liquidity is not removed from bank balance sheets through transfers to devices.

Illustrative funding impact

• Illustrative case: 50 million users × USD 10 average reservation = USD 500 million retained in regulated institutions; at a 5% alternative funding cost, this could represent up to USD 25 million in annual avoided funding cost, subject to regulatory treatment.

• Offline capacity reservations can support bank liquidity and interest income; small reservations across millions of users may generate significant annual value.