The First Bank Utilizing XRP Reveals Ripple-Based Trade Finance System to Replace Swift
The first bank to utilize Ripple’s cross-border payment solution xRapid says it’s also using Ripple’s blockchain technology to test a new trade finance system.
Euro Exim Bank’s head of compliance and operations Graham Bright told Global Trade Review it plans to use Ripple’s xCurrent to power the new pilot.
“While Ripple has so far focused its xCurrent product on payments messaging only, Bright says the two parties are now preparing to pilot a capability that embeds trade finance instructions into an xCurrent message.
This is similar to what Swift offers today, but on a blockchain-based network that allows for real-time exchange without a middleman. ‘The idea is – apart from just the payment instruction – what if we use the message to transmit a trade finance instruction directly to a counterparty? It could be a letter of credit or a performance bond. Technically you are able to transmit the whole of that message via xCurrent,’ says Bright.”
As for the XRP-powered xRapid, Euro Exim says it plans to roll out the technology for commercial production in the first quarter of this year.
The bank recently released a new video touting the tech’s ability to power a “new era” of innovative payment solutions.
Founded in 2011 with offices in London and St Lucia, Euro Exim provides financial services for export and import companies.