Standard Chartered Bank uses blockchain to complete cross-border payment in ten seconds

Rage Comment : Standard Chartered Bank, a long-established multinational bank, recently used Ripple's blockchain technology to complete a real-time cross-border payment in ten seconds. Like the National Australia Bank, both use the Ripple blockchain to complete the transfer within ten seconds. It is estimated that banks will fully deploy blockchain solutions as early as 2017.

Translation: Annie_Xu

Standard Chartered, a multinational bank and financial institution based in London, UK, has announced the completion of the first real-time cross-border payment using blockchain.

Standard Chartered is the latest bank to complete a blockchain payments solution.

While many banks are developing business transactions, Standard Chartered used the enterprise-level blockchain platform of Ripple, an Internet financial startup. The transaction was connected to an unnamed "large correspondent bank" and completed the transaction within ten seconds. Its settlement time is said to have "transparency in transaction fees and foreign exchange." The bank said that currently the banking system and network take two days to complete the settlement.

Alex Manson

Alex Manson, Global Head of Standard Chartered Transaction Banking, said:

“Payments innovation is critical to the formation of a customer ecosystem, making it more cohesive, reducing risk and increasing transparency.”

In fact, as an important part of the foundation of the existing banking system, the payment industry is being transformed by the underlying blockchain technology of Bitcoin. IBM recently published a survey showing that banks are actively deploying blockchain solutions, as early as 2017.

Blockchain: Transparent 24-hour real-time payment

Standard Chartered implemented the project after a technology pilot demonstrated that it could reduce costs, increase efficiency and bring benefits to clients.

The bank said that once blockchain applications are fully commercialized, businesses will be able to implement cross-border payment services. Transaction fees and exchange rates will also be more transparent, and users will have better control over payments and funds.

The project is just part of Standard Chartered’s construction of a complete blockchain banking service ecosystem, which aims to connect business communities, increase financial transactions and investments, mainly in Asia, Africa and the Middle East. Therefore, Standard Chartered’s implementation of cross-border payments may involve real-time transfers between physical banks in the Eastern Hemisphere.

Standard Chartered’s pilot project based on the Ripple blockchain is part of its investment strategy for fintech startups. Although the specific investment plan is not yet clear, the bank will observe Ripple’s operations and plans.

Similarly, one of Australia’s big four banks, National Australia Bank (NAB), recently completed a proof-of-concept payment, also using Ripple’s distributed ledger, also in ten seconds.