Ripple signs first two US banks

Ripple signs first two US banks

Open source payments outfit Ripple Labs has snared deals with two US banks who plans to use its real-time settlement protocol for cross-border money transfers.

Cross River Bank and century-old CBW Bank says they will use will use the Ripple protocol to offer business and personal banking customers international payments between the US and Western Europe.

They follows in the wake of Germany's Fidor Bank, which in May became the first the bank in the world to utilise Ripple for sending real-time money transfers.

San Francisco-based Ripple Labs offers a decentralised order book relying on open-source peer-to-peer payment protocols to speed the transfer of financial information.

The software company's team of 60 is comprised of cryptographers, security experts, distributed network developers, Silicon Valley and Wall Street veterans. They contribute code to the protocol and create tools to ease integration with with banks' back-end infrastructure.

Applications like Ripple are considered to pose a credible threat to the long-term future of traditional payment networks such as Swift, by allowing banks to to seamlessly transact with other institutions without the need for correspondent banks, fees, time delays or additional integration work.

"Today's banks offer the equivalent of 300-year-old paper ledgers converted to an electronic form a digital skin on an antiquated transaction process," says Suresh Ramamurthi, chairman and CTO of CBW Bank. "Ripple addresses the structural problem of payments as IP-based settlement infrastructure that powers the exchange of any types of value."

Comments: (5)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 24 September, 2014, 14:34Be the first to give this comment the thumbs up 0 likes

Is Ripple becoming alternate to SWIFT for Cross boarder payments? Interesting comment by the banker.

Chetan Ghadge
Chetan Ghadge - Wipro - Pune 24 September, 2014, 15:28Be the first to give this comment the thumbs up 0 likes

To do a cross border payment  these banks need a counter party on the other end who is also on Ripple. I am wondering how many banks in Europe are accepting Ripple payments. Fidor bank  in Germany, I understand,  is using Ripple to make payments to its own branches . They are using Ripple as a closed loop system.

 

A Finextra member
A Finextra member 25 September, 2014, 05:39Be the first to give this comment the thumbs up 0 likes

CBW Bank has $2 million equity and total asset size of $12 mm run by a husband/wife team with no experience

http://research.fdic.gov/bankfind/detail.html?bank=13959&name=CBW%20Bank&searchName=CBW%20Bank&searchFdic=&city=&state=&zip=&address=&searchWithin=&activeFlag=&tabId=1#

Get real Mr. Ramamurthi. Nonethe less I am impressed by your ambition of addressing the structural problems of payments. 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 25 September, 2014, 15:561 like 1 like

@ChetanG: Any idea why Fidor uses Ripple to handle payments to its own branches instead of simply using intra-bank book entries?

@Anon: You seem to be impressed quite easily:) As for me, it takes at least one "disrupt" and "disintermediate" per sentence to float my boat!

Chetan Ghadge
Chetan Ghadge - Wipro - Pune 25 September, 2014, 16:09Be the first to give this comment the thumbs up 0 likes

Read on a forum that Fidor will be using Ripple for payments to its subsidiaries .

http://bitcoin.stackexchange.com/questions/25193/fidor-to-integrate-ripple-protocol-what-does-that-mean 

 

My mistake it is not branches but subsidiary banks.

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