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Cryptocurrencies

Ripple to power blockchain payments network formed by banks

Monday 26 September 2016 | 01:41 PM CET

Bank of America, Santander and the Royal Bank of Canada have teamed up to create a global blockchain payments network using Ripple’s distributed ledger technology. 

The aim of the project is to form the foundation of a global network that performs a similar service as SWIFT inter-bank messaging but with near-instant settlement times. Among other participants we include: Standard Chartered, UniCredit, Westpac Banking Corporation and Canadian bank CIBC. First phase of the program is creating a standardized agreement that establishes the terms and conditions which a bank must agree to in order to join, detailing how transactions will be processed and what kinds of information will be exchanged. Then a “functional standards document” should be created that would enable various banks to interact across currencies and jurisdictions.

Global Payments Steering Group’s main mission is the creation and maintenance of a payments transaction rulebook and formalized standards that they intend to then take to international standards-making bodies.

A good example of this type of payment standardization is the cross-border payments solution like the one Santander announced in May 2016, in which bank employees could issue payments between banks using Ripple's network.

More: Link
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