Top Australian & Canadian Banks Tap Ripple’s Payment Solution for Cross-Border Settlements

Top Australian & Canadian Banks Tap Ripple’s Payment Solution for Cross-Border Settlements.

The National Bank of Australia (NAB) and North American banking giant, the Canadian Imperial Bank of Commerce (CIBC), have signed a partnership deal that will facilitate cross-border payment settlements using Ripple’s RippleNet solution. 

NAB noted in a recent announcement that traditional financial institutions will be using Ripple technology for cross-border settlements because of the solution’s prowess in facilitating relatively cheap and faster transactions. 

Jonathan Davey, NAB Executive General Manager, NAB Labs, said aside from the RippleNet solution having the capacity to facilitate cheap and fast cross-border transactions, the technology also has the ability to improve the efficiency and security of the banks’ payment system.  

“We’re excited to be working with CIBC and have already partnered with them in using Ripple’s blockchain technology to complete international payment transfers between our banks as a proof of concept,” Davey added. 

The development further reignites the widespread adoption of Ripple technology by traditional financial institutions seeking to facilitate fast and cheap cross-border settlements. 

Through RippleNet, the XRP cryptocurrency is used as a bridge between two fiat currencies, an initiative that unlocks capital, reduces operational cost, and eliminates the pre-funding accounts on each end of a transaction. 

Banks Adopt Ripple’s XRP Amid SEC Lawsuit

Since RippleNet was launched, it has attracted over 300 financial institutions globally, as they continue to show their support for the payment network despite Ripple’s legal woes with the Securities and Exchange Commission (SEC). 

NAB and CIBC’s adoption of Ripple’s RippleNet solution reiterates the confidence financial institutions outside the United States have in the blockchain company’s reputation. 

Recall that Ripple has been in a long-term legal battle with the SEC, as the securities agency argues that the blockchain company breached its laws by offering unregistered securities within its jurisdiction. 

Ripple has noted severally that the XRP is not a security, but a currency used to facilitate cross-border settlement, and the company’s statement has been backed by other countries’ classification of the sixth-largest cryptocurrency.