Axis Bank Initiates Super-Fast International Transfers Using Ripple’s Blockchain Technology
Axis Bank had established a collaboration with fintech firm Ripple earlier this year for brainstorming about solutions which could decrease the time and cost incurred in bringing about cross-border remittance. It seems that all hard work taken up for months has eventually paid off with Axis Bank recently announcing its cross-border payment platform using Blockchain Technology and fuelled by Ripple’s technological stride. The service has presently been launched for the retail customers of Axis Bank situated in India who wish to receive payments from the UAE based RakBank. There is also a payment platform earmarked against corporate Indian customers wishing to receive payments credited at Standard Chartered Bank, Singapore. Axis Bank feels that the transaction time for money transfer on an international scale shall be reduced to 5-10 seconds from 3-5days taken presently by relying on Ripple’s technology.
Not only Indian Bank but also, banks in Japan and Thailand adopted Ripple’s Blockchain Technology. Siam Commercial Bank, the Thai Bank states that :
“Thanks to the Blockchain technology, the transfer time will be drastically reduced: from 2 days to 2 seconds”
Also Read: Bill Gates Foundation Uses Ripple Technology
The shared digital ledgertermed as “Blockchain” which is used increasingly in powering all cryptocurrencies such as Bitcoin and Ether gets continuously updated along with all the transactions. The record of every transaction taking place across its peer-to-peer network on either a private or public basis is kept intact in the decentralized ledger.
Blockchain mechanism is used by Ripple for fostering money transfers but it shall require the partnership of banks for gaining optimum momentum. Till date Ripple has established partnerships with Bank of America Merril Lynch, Standard Chartered Bank, Mizuho, UBS Group etc.
Very recently Ripple established a partnership with bigshot card network American express for helping the Spanish banking group Santander which is sure to bring smiles to its American Express business users who can now make traceable and instant payments to other UK based Santander accounts. Ripple also crossed its 100 member mark in October which is indicative of its tremendous progress in the sector of establishing new partnerships with a futuristic vision.
Major Blockchain Milestones Set in India
– YES Bank has started making use of a smart contract based on blockchain architecture developed by Cateina Technologies, a fintech start-up which will aid Bajaj Electricals is disbursing funds and offering lucrative vendor discounts. The bank also revealed that it has rolled forward a road map which is aimed at commercializing blockchain-based banking solutions in India. The bank is presently exploring the use cases for implementing the same towards Documentary Collections, Letter of Credit, Foreign Remittances as well as establishing partnership with Correspondent Banks for fostering Trade Finance and a bevy of other services. (read full article)
– State Bank of India (SBI), the largest bank of the country shall be deploying a smart contract for bringing about KYC solution using the blockchain architecture. The same shall be deployed over BankChain which is a community consisting of both Indian and foreign banks undertaking developmental activities for bringing about blockchain solutions. Started in February by SBI, BankChain also boosts of other influential banks as its members. With its membership already availed by 29 banks including ICICI Bank, DCB Bank, YES Bank, Kotak Bank etc, we can surely keep great expectations from BankChain.
– ICICI Bank had come up with a blockchain application in last year’s October and established a partnership with Emirates NBD, a Middle Eastern banking group for piloting transactions in its blockchain network. The first blockchain transaction was executed for showcasing confirmation in regards to shredded steel melting imported by a export-import firm based in Mumbai from a supplier based in Dubai.
– India’s seventh largest state, Andhra Pradesh, has signed a partnership with WISeKey, a cybersecurity company, in a bid to protect citizen data using Blockchain technology.
Also,the Andhra Pradesh Government has partnered up with a Swedish startup ChromaWay to register the land/property registrations on a blockchain based platform.
Also Read: Ripple sets up an office in Mumbai, India
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.