Standard Chartered has announced the completion of the first real-time cross-border payment for businesses with another major correspondent bank in the Bank’s latest step to leverage distributed ledger technology for its clients as part of the recently launched ‘Banking the ecosystem’ strategy.
Typically taking up to two days for businesses to make cross-border funds transfers, the pilot which leveraged Ripple’s enterprise blockchain solutions saw the cross-border payment being completed in less than 10 seconds with full transparency of fees and FX.
Alex Manson, Global Head, Transaction Banking, Standard Chartered, said: “This initiative is an integral part of our digitisation agenda in the area of distributed ledger technology as we continue to explore new ways of adding value to our clients and the industry. Digitisation is a priority for the Bank to better serve our clients by connecting business communities in a more efficient way. Payments innovation is a key area of focus in order to bank our clients’ ecosystem and make it more cohesive, reduce risk and increase transparency.”
When fully commercialised, businesses will have the ability to access and make cross-border payments in real time, at any time of the day, without being restricted by cut-off times. In addition to that, fee & FX transparency along with real-time status updates will provide businesses greater control and certainty on their payments, costs and the use of funds.
Ripple CEO & co-founder Chris Larsen said: “We're thrilled to be collaborating with Standard Chartered on this initiative to make cross-border payments truly efficient for their customers. This marks a major step towards real-time financial settlement. Together we’re building the foundation for the seamless flow of value and new business opportunities that haven’t previously been possible.”
Standard Chartered recently announced its strategic investment in Ripple, one of the most advanced distributed ledger technology companies in the industry with immense experience in financial services and compliance, to accelerate the Bank’s digitisation agenda and it’s ‘Banking the ecosystem’ strategy.
Launched last week, ‘Banking the ecosystem’ is a part of Standard Chartered’s global strategy that aims to connect business communities and facilitate increased trade, commerce and investments across Asia, Africa and the Middle East. Standard Chartered envisions that the future of banking will be about ‘Banking the ecosystem’, a differentiated value proposition whereby Standard Chartered will deploy innovative and customised solutions that best suit its clients’ ‘ecosystems’ - the international and domestic network of suppliers, distributors and customers of all sizes that together drive global trade and commerce.