With the launch of the “Global Payments Steering Group”, blockchain startup Ripple has revealed details of a new interbank group that will create the first “rules-based blockchain payments network” for global money transfers.
In an announcement today, blockchain and Fintech startup Ripple has revealed that banks are getting closer toward uniform policies and governance for the transfer of money over blockchain.
The Global Payments Steering Group (GPSG) sees six founding members and will be the first interbank group for global payments based on blockchain technology.
Its founding numbers include Bank of America Merill Lynch and Royal Bank of Canada from North America; European banks Santander, UniCredit and Standard Chartered; and Australian banking institution Westpac Banking Corp.
A press release reveals that the GPSG will “oversee the creation and maintenance of Ripple payment transaction rules, formalize standards for activity using Ripple, and other actions to support the implementation of Ripple payment capabilities.”
Donald Donahue, former President & CEO of the Depository Trust & Clearing Corporation (DTCC) – the post-trade financial services provider to Wall Street – will assume the role of the Chairman at the newly founded interbank group. He stated:
The creation of GPSG is significant because this represents the first time that major banks have formulated policies to govern the transfer of money across borders using blockchain.
Altogether, Ripple and its partners aim to reduce settlement times and costs while ushering in new methods to facilitate high-volume, low-value transactions, globally, using blockchain technology.
Ripple CEO and co-founder Chris Larsen added:
Today, people expect money to move at the speed of the Internet. That’s why we’re working with these top banks to address the need for faster cross-border payments.
He sees the GPSG enabling financial institutions and their customers undertake “new types of payments at mass scale.”
In turning blockchain’s potential to real-world applicability, Santander’s chief at R&D added:
It’s time for banks to push on from discussing the potential benefits of blockchain, to making them a reality.
The interbank group's creation comes soon after Ripple secured a $55 million round of Series B funding earlier this month. As things stand, Ripple's network of banking partners include 15 of the top 50 global banks. 10 of those banks are in commercial deal phases, and Ripple has seen 30 bank pilots completed.
CCN has requested Ripple for additional comment and will update this article.
Images from iStock/NikGar and Ripple.