Siam Commercial Bank (SCB) to Use Ripple Blockchain
October 1, 2018 4:50 pm
Ripple has recently announced its partnership with Thailand’s Siam Commercial Bank (SCB). The announcement stated that the bank would be the first to use RippleNet’s “multi-hop” feature. The feature would allow the bank to process easy payments on behalf of other financial entities in Ripple’s blockchain network.
Ripple stated that this multi-hop feature would offer SCB the ability to receive and forward payments. This would also eliminate the role of an originator and beneficiary institution.
The announcement stated how countries in the Association of South Eastern Asian Nations (ASEAN) have suffered from inefficiencies and high fees when it comes to cross-border payments. Most countries around the world have to convert a payment to USD in order to settle correspondent banks. Those countries are also required to change the currency again into the beneficiary entities local currency.
The San Francisco based start-up (Ripple) applauded the multi-hop feature; now financial institutions can connect directly to the SCB. This will help SCB to carry out regional transactions without converting currencies multiple times. The multi-hop feature will make sure that customers of businesses associated with RippleNet will have transparent payments. This is helpful to process transactions faster with lower fees.
Recently the U.S. based PNC bank adopted Ripple’s xCurrent in order to start accepting cross-border payments. The cross-border transactions would use Ripple’s feature to process the cross-border payment system.