Global banks collaborate to build Ripple blockchain payment network

Rage Review : Global banks such as Bank of America, Santander and Royal Bank of Canada announced today that they will cooperate to create a global blockchain payment network using Ripple's distributed ledger technology, which provides similar communication services to SWIFT, but the difference is that Ripple's payment network achieves real-time settlement. The participating banks are actively working with GPSG to define standards and determine the process definitions required by the industry to build a better payment network.

Translation: Nicole

Bank of America, Santander and Royal Bank of Canada today announced a partnership to create a global blockchain payments network using Ripple’s distributed ledger technology.

UniCredit, Standard Chartered and Westpac have teamed up to create a global blockchain payments network that will provide a service similar to SWIFT interbank communications, but with real-time settlement. Canadian Imperial Bank of Commerce is also involved.

The primary early task of the Global Payments Steering Group is to create and maintain a rulebook and formal standards for payment transactions, which can then be applied to international standard-setting bodies.

Marcus Treacher

Marcus Treacher, Ripple’s newly hired global head of strategic accounts, told CoinDesk:

“Currently, cross-border communication services are provided by Swift, and everyone’s cross-border funds transfer is also provided by Swift. We think this can be improved by Ripple.”

Treacher called for cross-border payment solutions, like the one Santander announced today, which will allow bank employees to initiate payments between banks using Ripple’s network.

The news comes immediately after the company announced earlier this month that it had raised $55 million to expand current projects, bringing Ripple’s total venture funding to more than $90 million to date.

Backbone

Treacher said that currently, relevant banks are actively designing the rules of the game.

The first step is to establish a standard agreement, which means that banks must agree to these established terms in order to join. The agreement explains in detail how transactions are processed and what kind of transaction information is required.

The second is to create a "functional standard document" that will allow banks to interact across currencies and jurisdictions. First on the GPSG list is developing those foundations and then helping banks by creating administrative services.

Previously, Ripple handed over stewardship of the Interledger protocol to internet standards body W3C, and Treacher said his company would do the same to replace ISO’s current 20022 standard for payments communications.

The banks said they see the development of network standards as a key goal in advancing blockchain technology.

Julio Faura, head of research and development at Santander, said in the statement:

“The devil is in the details. We are working with GPSG to define the standards and processes that the industry needs to build a better payments network.”