Ripple’s remittances blockchain-based solution is winning over banks around the world.
Axis Bank has announced that it will partner with Ripple to leverage remittances blockchain solutions for its operations. In doing so, Axis becomes the third lender in the country to utilise blockchain technology, joining ICICI Bank and Yes Bank, The Economic Times reported.
Axis follows the addition of several financial institutions to the company’s global network. Banks include Standard Chartered, National Australia Bank (NAB), Mizuho Financial Group (MHFG), BMO Financial Group, Siam Commercial Bank and Shanghai Huarui Bank.
Deputy Managing Director of Axis Bank, V. Srinivasan said to the Economic Times that “We are committed to using innovation in technology to make banking simple and convenient for our customers.”
“remittances have been a key strategic area for the bank and the block chain technology will enable real-time affordable money transfers” he continued.
Ripple is a global settlement network that uses blockchain technology to satisfy new consumer demands for cross-border payments. Ripple connects banks around the world and allows them to enable real-time international payments services to their customers. Current cross-border transactions involve a variety of intermediaries, which result in a settlement process that can take several days. This creates costs and risks that have frustrated individuals and businesses that rely on cross-border payments.
Utilising blockchain technology, Ripple eliminates costly intermediaries, making it possible to execute cross-border payments directly between banks in a matter of seconds. The potential improvements to the multibillion-dollar cross-border payments business are massive, and banks are taking notice.
“2016 has proven to be the year where the most forward-thinking financial institutions are actually using blockchain technologies for payments and settlement rather than as an experiment,” said Ripple CEO and co-founder Chris Larsen. “The continued growth of the Ripple network represents a major endorsement of our open approach to connecting the world’s banks and their customers, and together we are building a modern payments system to enable new economic opportunities and the seamless flow of value around the world.”