The National Bank of Abu Dhabi (NBAD) has become the first bank in the Middle East to use the Ripple protocol for cross-border payment transactions, joining a growing list of banks around the world adopting the technology.
At NBAD, the new channel sits within the bank's existing payments infrastructure and offers regional customers end-to-end visibility of transactions and the instant transfer of funds to beneficiary accounts.
According to the 2016 World Bank migration and remittances factbook, the UAE is ranked as the fourth top remittance-sending country in the world, accounting for more than $19 billion (Dh70 billion).
Vineet Varma, managing director & head of global transaction banking, NBAD says: “We’re always exploring new ways to enhance our customers’ experience. With blockchain, we hope that we could address the needs of our customers and drive forward more efficient and flexible service.”
Ripple has been building up a head of steam since scoring a $55 million funding round back in September last year, landing new clients across the globe attracted to the promise of real-time payment flows with transaction immutability.
Brad Garlinghouse, CEO of Ripple, comments: “Banks and their customers have been hearing about the promise of blockchain technology to enable real-time cross-border payments. Now, some of the most innovative and successful banks like NBAD are making this a reality by offering Ripple-enabled payments to their entire customer base, and in doing so, paving the way to make 2017 the year we see broad commercialization of blockchain take hold globally.”