Saudi British Bank (SAAB), an associate of the HSBC Group, has reportedly launched a blockchain based Ripple platform in an attempt to offer a low-cost cross-border payment solution as announced on April 25. The bank has been working on the project for some time now, and it is ready to move from the beta stage.
According to SAAB, this new financial product will clear and settle cross-border payments in real time as it will do away with third parties. It will also reduce the complexity as well as cut the cost of traditional payment systems. The bank’s deputy managing director of corporate and institutional banking, Majed Najm said:
“SABB provides its customers with faster, safer and more transparent cross-border payment services by the launch of blockchain technology through Ripple.
The Indian Rupee (INR) is a positive start to an upcoming roadmap being the first currency to be activated in SABB. This plan aims to provide customers with a valuable service and link more countries and currencies in the near future.”
Details of the partnership are currently scarce, and it remains to be seen whether the bank uses xCurrent software, real-time messaging between two financial institutions for a range of settlement scenarios or xRapid, a liquidity solution from Ripple, which uses XRP, the 3rd largest crypto asset by market cap, as a bridge currency for settling international payments.
It is likely the bank has adopted xCurrent as xRapid has seen relatively fewer adopters compared to xCurrent. As reported by Coindoo, the majority of Ripple partners have shunned xRapid due to regulatory concerns. A London-based Euro Exim Bank is the first and only traditional financial institution that has adopted xRapid.
So far, customers on the xCurrent product, including Banco Santander, American Express and PNC bank have either not adopted or are not looking forward to integrating the xRapid solution.