A recent report has it that Thai oldest bank, Siam Commercial Bank (SCB), has made a cross-border payments transfer using Ripple’s technology. Leveraging ripple’s technology, the bank was able to complete a transaction which normally takes about 2 days in just 1minute.
SCB and Ripple Making Cross-border B2B Payment Easy
“In a bid to optimize operational efficiency, SCB and PTTEP have collaborated since mid-2018 on a research and development effort to adopt Blockchain technology for cross-border B2B payment. Earlier this year, the project was able to make pilot payments on Blockchain, with payments reaching destinations within one minute, compared to one to two days with conventional methods.” The official announcement read.
In the announcement made by the bank, ripple was not mentioned. However, the previous report had it that the bank was working with Ripple’s tech to foster faster cross border payments.
Last year, SCB and the PPT Exploration and Production Public Company Limited (PTTEP) entered into a cooperation agreement centred on the creation of a cross-border payments system which will provide support for PTTEP’s B2B funds transfers between partners and service providers.
At that time, the Senior Vice President Chief Executive Officer of Commercial Banking Solutions, at SCB— Phimonpha Santichok, said: “SCB has invested in Ripple, which is a major global enterprise blockchain solution.”
Ripple, on the other hand, did release a blogpost in which it mentioned its involvement in the milestone achieved by the bank.
The blog post read:
“Siam Commercial Bank (SCB) will be the first financial institution on RippleNet to pioneer a key feature called “multi-hop”, which allows them to settle frictionless payments on behalf of other financial institutions on the network. This eliminates the need for a direct one-to-one connection (or bilateral relationship) between financial institutions to settle a payment. Using multi-hop, SCB will be able to receive and forward on a payment without a bilateral relationship between the originator and beneficiary institutions.”