Canadian and Australian Banks Join RippleNet For Cross-Border Payments

March 22, 2022 10:25 pm Comments

The Canadian Imperial Bank of Commerce (CIBC) and the National Bank of Australia (NAB) have announced that they will be joining RippleNet for international payments and settlements which marks a new record for Ripple’s position as the leading blockchain payment solution.

The new partnership is part of a larger alliance between banking institutions in Canada, APAC, and Israel which aims to collaborate on new technologies and opportunities in order to provide better customer experiences.

At the center of this entire partnership is the use of Ripple’s network which is able to provide instant cross-border transactions utilizing the network’s native token XRP.

So far, the network already has an extensive history of working with financial institutions with an existing roster list of over 300 financial entities making it the leading solution provider by a wide margin.

The blockchain’s ODL service allows for extremely low operational costs and will allow for transactions between any two currencies.

FinanceFeeds reports:

The partnership centers around adopting RippleNet’s global payment network service, which leverages Ripple’s native stablecoin for instant cross-border payments, through the ODL service.

Through On-Demand Liquidity, RippleNet utilizes XRP as a bridge between two currencies, thus lowering operational costs, unlocking capital, and enables the users to avoid pre-funding accounts on each side of a transaction.

“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.

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 NAB Executive General Manager NAB Labs Jonathan Davey.

With this new partnership and alliance between existing banks, it is likely that this may lead to additional major banks to start exploring the use of RippleNet for their cross-border transactions as well.

Some major banks are already in the middle of testing the capability as the solution will provide multiple tangible benefits such as being faster and cheaper than existing financial systems that are used by banks today.

The collaboration also includes Bank Leumi which is a major bank in Israel which proves how Ripple’s technology can be used in real world use cases by multiple major financial institutions all over the world.

The expansion of RippleNet’s presence in this recent news covers regions like Canada, Australia, and Israel indicating that the legal setbacks it has had in the United States has not slowed down its growth.

CoinSpeaker reports:

Amidst the ongoing embrace of the company for its potential, Westpac Banking Corporation was not in any way shy to admit it is making use of Ripple’s RippleNet as it is a more viable, and cheaper faster alternative to the current solutions around.

The Australian banking giant believes there could be a lot of benefits to the financial services sector should innovative blockchain protocols be embraced across the board.

Ripple has not let its legal issues deter its growth momentum.

Besides its involvement with banking institutions, the startup, valued at about $15 billion has also joined the Digital Pound foundation with plans to help in the development of the United Kingdom’s Central Bank Digital Currency (CBDC), as reported earlier by Coinspeaker.

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