GMT, the largest financial institution in Israel has adopted Ripple’s Blockchain technology to facilitate international payments. This makes the company one of the first to join others like AmericanExpress, MoneyGram, Earthport, CIBC, and AKBANK who are the current users of the platform.
Competing with SWIFT to Aid International Transaction Between Banks
Ripple’s technology for aiding cross-border payments was developed to compete with SWIFT. This is in the area of making payments with ease between financial institutions in different countries. SWIFT has been said to be the current platform used by most banks and sometimes, these banks encounter delays. Therefore, Ripple wants to innovate by offering its Blockchain to aid in international money transfer.
The technology has also been known to process payments faster and it puts a low cost on people that want to send money across borders. There is also transparency during transactions since the banks involved in the transaction have access to data in real-time. As a result, this clears doubt and helps to foster trust.
GMT to Use Ripple’s Blockchain for Cross-Border Payments
GMT announced on its platform that they will now be using the Ripple Blockchain technology to transact with banks in other countries. They also added that this makes them the first representative of Ripple in the Israeli nation. Moreover, their collaboration will help to create a global financial system using a high-end technology.
AKBANK, a bank in Turkey has recently used the same platform to send money to another institution in the UK. The bank revealed that the money was sent in Great British pounds (GBP) and the transaction was swift. The recipient bank is Santander bank in the UK, and they were also able to view details on the transaction while it occurred.
Banks Aim to Improve Client Services Using Blockchain Technology
Ripple’s Blockchain is quite becoming popular but more industries are adopting the Ethereum Blockchain to improve their services. Itaú Unibanco Holding SA and Standard Chartered, two banks in Latin America collaborated to develop a platform that is based on Blockchain technology to issue loans to the public.
A financial institution in New York, Signature bank also plans on using the Ethereum Blockchain to allow its customers to send and receive money. The city’s Department of Financial Services (DFS) approved the platform to earlier this month. Therefore, Signature bank is the only one currently using the platform. There are hopes that other banks may be approved in the future to also offer services using a decentralized platform.