The decision to utilize RippleNet stems from the fact that the technology is cutting edge, and is designed with security in mind.
The CIBC, Canadian Imperial Bank of Commerce (TSE: CM), a Canadian multinational banking and financial services corporation headquartered in Toronto, Ontario is set to tap into Ripple’s cross-border payment technology in partnership with National Australia Bank Ltd (ASX: NAB), one of Australia’s top 4 banking institutions. The news comes after NAB announced the formation of an international bank innovation network with RippleNet playing a prominent role.
Ripple Labs Inc made its way into the fintech world riding on blockchain technology as far back as 2012 and has since designed a number of functional payment solutions whose utility continues to grow by the day. RippleNet is the company’s primary global payments network which is designed to enable startups to run a high-performance global payments business.
While established in the United States, the company’s growing list of clients has spread abroad. The CIBC-NAB collaboration to use RippleNet’s solution comes off as one of the company’s most ambitious pushes towards becoming a globally recognized player in the emerging fintech world.
According to the press release on the partnership shared by NAB, the decision to utilize RippleNet stems from the fact that the technology is cutting edge, and is designed with security in mind.
“We’re excited to be working with CIBC and have already partnered with them in using Ripple’s blockchain technology to complete international payments transfers between our banks as a proof of concept. We believe that the technology has the potential to not only deliver real-time international payments, but also improved security and efficiency of our payments systems, so this is an important piece of work,” said NAB Executive General Manager NAB Labs Jonathan Davey.
The bank’s collaboration with CIBC extends to Israeli outfit, Bank Leumi which doubles as a forward-thinking and tech-driven bank in the Middle East. This current partnership has, for the first time shown how well Ripple’s tech can be integrated by mainstream financial bodies.
Canadian CIBC and the Global Ripple Embrace
From recent trends and observations, a lot of global companies have been identifying with Ripple, despite the company’s ongoing legal brawl with the United States Securities and Exchange Commission (SEC).
Amidst the ongoing embrace of the company for its potential, Westpac Banking Corporation was not in any way shy to admit it is making use of Ripple’s RippleNet as it is a more viable, and cheaper faster alternative to the current solutions around. The Australian banking giant believes there could be a lot of benefits to the financial services sector should innovative blockchain protocols be embraced across the board.
Ripple has not let its legal issues deter its growth momentum. Besides its involvement with banking institutions, the startup, valued at about $15 billion has also joined the Digital Pound foundation with plans to help in the development of the United Kingdom’s Central Bank Digital Currency (CBDC), as reported earlier by Coinspeaker.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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