October 20, 2016
Trial with 12 banks shows promise of blockchain-inspired alternative to correspondent banking
October 20, 2016 (London) – Financial innovation company R3 and 12 of its consortium member banks have trialed Ripple’s distributed financial technology and the potential for its digital asset to scale liquidity and reduce the costs and inefficiencies of interbank cross-border payments.
Banks traditionally provision liquidity for cross-border payments by holding various currencies in local bank accounts around the world, known as 'nostro accounts.' The practice of holding various currencies across many accounts is costly because banks have to fund those accounts, trapping capital. The emergence of digital assets offers an alternative to this process, which has become cost-prohibitive and inefficient, especially for low-value payments.
Digital assets can enable real-time value exchange anywhere in the world, providing liquidity on demand and significantly reducing associated costs. Of the popular digital assets today, XRP boasts the fastest settlem ...