Ripple is adding ten new banks and financial services companies to its “blockchain network”. Founded in 2012, Ripple has reportedly raised about $1
Ripple is adding ten new banks and financial services companies to its “blockchain network”.
Founded in 2012, Ripple has reportedly raised about $100 million for its distributed ledger technology and related payments products. However, it has turned its attention towards seeking to close collaborative deals as part of its consortium efforts.
Some of the new members include MUFG (Japan), BBVA (Spain), SEB (Sweden), Akbank, Yes Bank (India), Axis Bank (India), SBI Remit (Japan), Star One Credit Union (US), EZ Forex (US) and Cambridge FX (Canada), as the article added.
“You need a whole ruleset, and that’s why we call it a blockchain network and when we say that partners are joining, they’re actually agreeing to the standards and rules that accompany the technology as well.”, said Asheesh Birla, Ripple VP of product.
The idea is that the company wants to define its services in more collaborative terms, as the executive explained. The product allows for faster cross-border payments, but the company tries to create a set of standards for banks to follow while using their technology, Birla told coindesk.com.
Ripple`s VP of product elaborated that many banks are processing more international payments that ever before. Therefore, distributed ledger technology (DLT) can be a major advantage that can help financial institutions with a range of problems. For example, it is reportedly pointed out that without a standardized procedure, things get messy when operating payments to several different countries, as Birla noted.
“[Banks are] looking at this as a new kind of service that they can offer that would compete with a lot of the startups in their space.”, he added.
Still, their network is to be expanded even further.
“The reason that we chose to work with banks is that they are experts in local regulation. A lot of them have that pull and understand the regulatory environment and we built our product in such a way that it fits within the different regulatory schemes around the world.”, Birla stated.