Earthport, known for its extensive payment network for cross-border transactions and robust ACH infrastructure, has created the world’s first Distributed Ledger Hub (DLH).
The DLH service is accessed through Earthport’s Distributed Ledger Gateway, previously announced in August of 2015, and will provide full connectivity to the Ripple ecosystem, including Ripple instances, Ripple market makers, and eventually other Distributed Ledgers.
Ripple had a big year in 2015. They added $32M to the war chest, created a partnership with Western Union, contributed a team member to a Fed committee, and on-boarded some notable financial institutions for trials . Furthermore, as CCN.com previously reported, Microsoft added a Ripple validating node into the BaaS Azure platform.
With the addition of the DLH to the Distributed Ledger Gateway, Earthport will be able to offer an attractive solution for banks that are often faced with ostensibly opposing goals of constraining costs while actively participating in the industry phase shift emboldened by the rising tide of fintech.
Utilizing the DLH, Earthport clients can utilize the full benefit of the group’s Distributed Ledger Technology through a simple and inexpensive single API, a world’s first for the financial industry. The API not only allows access to the Ripple ecosystem but also provides access to the vast array of payment methods Earthport offers in over 60 countries. In understanding the immediate usage of this technology, it is important to remember that Earthport explicitly states “services in the DLH are conducted entirely in Fiat currencies with no use of crypto currencies.”
Nevertheless, as more and more fintech is gradually adopted, the DLH innovation will allow for banks to more easily move into this technology by putting the onerous of compliance and infrastructure on Earthport. As many institutions continue to embrace the “buy and build” strategy, Earthport has provided an easy to understand, easy to use on-ramp for banks. The DLH also fits squarely within the group’s mission to continue to “provide access to as many countries, currencies, accounts and payment types as possible through a single API.”
Summed up by Earthport’s CEO Hank Uberoi, “It is our belief that there may be different ledgers that gain traction over time – some will have a regional affiliation, and some may be more aligned by industry sector. Banks will need to have access to a growing universe of different ledgers to serve their own clients, further complicating their technical roadmaps. Earthport, in consultation with its clients, will grow the Hub to encompass different ledgers as needed, all available via a single Earthport API.”
This much is clear: Lots of resources are being devoted to the infrastructure necessary for a highly functioning crypto to take flight. Will it be in 2016? Eh, probably not. Nevertheless, continued infrastructure builds and additions will no doubt accelerate adoption in the future.
Image from Shutterstock.