Dutch banking group ING is reported to be implementing cryptocurrency XRP developed by Californian FinTech firm Ripple for international payments.
The unconfirmed plans would pave the way for the bank to reduce reliance on held funds in nostro accounts in various currencies, easing pressure on the balance sheet and favouring growth.
The XRP currency is one of a raft of new cryptocurrencies designed to transact directly and instantly globally, benefiting cross-border payments. today most such payments are processed through a chain of banks with each intermediary representing a potential point of delay, failure and cost and requiring sufficient funds to be held in nostro accounts.
Analysis from Ripple –the ROI (Return On Investment) of a representative respondent bank using Ripple can be up to 33 percent in liquidity, Basel III and operational costs.
Earlier this year, the Bank Of England used Ripple’s interledger protocol to test the proof of concept after announcing plans to introduce new functionality to support the ‘synchronisation’ of cash movements.
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