An international banking alliance is using the Ripple blockchain network technology for cross-border payments efficiency. Banks from Canada and Israel signed an agreement with National Australia Bank (NAB), Australia’s largest business bank, to improve the security and efficiency of their payment systems, share innovation strategies, and more.
Top Banks Use Ripple For Cross-Border Payments
Currently, the Ripple payment network works with worldwide financial institutions from over 55 countries. Their On-Demand Liquidity (ODL) service uses the digital asset XRP “to source liquidity during cross-border transactions, as an alternative to traditional systems.”
The Canadian Imperial Bank of Commerce (CIBC) and Israel’s Bank Leumi, recognized small business banks, are now using the Ripple payment network for cross-border transactions as a result of their alliance with the National Australia Bank.
The partnership is meant to enhance customer experiences by reducing costs, speeding up the payment service, and improving security. Reportedly, transactions that could have taken up to 2 days to become effective, can now be completed within minutes.
“We believe that the technology has the potential to not only deliver real time international payments, but also improved security and efficiency of our payments systems, so this is an important piece of work” said National Australia Bank (NAB).
The large Australian bank stated: “We’re excited to be working with CIBC and have already partnered with them in using Ripple’s blockchain technology to complete international payments transfers between our banks as a proof of concept.”
The financial institutions’ alliance is also expected to open new doors for each “to access first-class international innovation initiatives and insights,” NAB Executive General Manager NAB Labs Jonathan Davey said via the bank’s official announcement.
“Our customers want us to do things differently and strategic partnerships like this allow us to access ideas, talent and capabilities of like-minded organisations, in this case the opportunity to tap into two leading international banks, to help us gain world-class insights from global leaders to benefit our customers.”
The General Manager added that this is an opportunity for the institutions to develop solutions for common issues, as well as combine and leverage global knowledge and insights in order to “find ways to get in front” amidst the competitive and “rapidly changing world” of fintech.
Despite the SEC vs Ripple Labs lawsuit, the company has been growing its reputation overseas and its several international partnerships.
The Ripple network is becoming popular in Australia. It is recognized by financial businesses and the company members work alongside the country’s authorities as they develop a regulatory framework on crypto.
Last year, the company proposed three principles upon which an Australian regulatory framework for digital assets should be founded. This was included and credited upon the Australian Senate’s “Select Committee on Australia as a Technology and Financial Centre” final report.
According to RippleNet General Manager Asheesh Birla, the company ended 2021 with “a payment volume run rate of over $10B and expanded its On-Demand Liquidity (ODL) product to 22 destination markets.” He noted that the ODL product is near to achieving global coverage.
Birla believes the rapid growth is due to ODL’s “higher transaction speed and its more efficient use of capital,” in contrast with the traditional financial system.
Primarily, Ripple is a cross-border payments processor that makes it easier than ever to transfer funds internationally. Instead of waiting days and paying extortionate fees, Ripple facilitates rapid international transactions in seconds, with fees costing users less than a penny.
Ripple is better than SWIFT because it's simply a far more efficient payment network. People using Ripple can send funds anywhere in the world within 5 seconds and immediately verify that their payment has been received. Moreover, the transaction fee is fixed at just $0.0002, regardless of the transaction amount.
Ripple, a major player in the world of digital payments, is partnering with 10 governments to help them create their own Central Bank Digital Currencies (CBDCs). CBDCs are like digital versions of the money you use every day, but they are issued and controlled by a country's central bank.
Banks only need to hold enough XRP to facilitate their largest payment obligation and by only holding one currency, freeing up idle money that they previously couldn't use.
The partnership with Bank of America was confirmed by Julie Harris, the Head of Global Banking at Bank of America, in April 2020. According to Julie Harris, Bank of America aims to integrate new solutions like Ripple and Swift to offer customers the ability to conduct transactions anytime and anywhere.
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Amazon confirms a groundbreaking partnership with Ripple, integrating XRP for payment transactions. Ripple's XRP set to offer faster, more efficient payment solutions for Amazon's global customer base.
This week, VARA of the Dubai Financial Authority approved XRP, another win for Ripple on the global stage. The approval means that Dubai can use XRP for money transfers globally. The approval signals more XRP adoption.
XRP has been a hot topic of discussion after a cryptic X post from Elon Musk and as the crypto community continues to speculate about the possibility of XRP ETF approvals.
XRP is currently supported by more than 100 financial institutions, banks, and payment systems, including Bank of America, PNC Bank, Siam Commercial Bank, Santander Bank, and Standard Chartered Bank.
The Clearing House, a known Ripple partner company, is working with Wells Fargo on a cross-border payments system, "specifically designed to support digital commerce," that could potentially replace SWIFT.
Amazon confirms a groundbreaking partnership with Ripple, integrating XRP for payment transactions. Ripple's XRP set to offer faster, more efficient payment solutions for Amazon's global customer base.
Exodus is a non-custodial cryptocurrency wallet known for its user-friendly interface and availability across desktop and mobile platforms. It supports a wide range of features tailored for DeFi enthusiasts and provides access to over 150 cryptocurrencies, including Ripple (XRP).
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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