Ripple is developing various partnerships with banks with the ultimate aim of reducing fiction in global payments, the recent one being their collaboration with Kotak Mahindra, a leading Indian private-sector bank. Emi Yoshikawa, Director of Joint Venture Partnerships at Ripple, on TechCrunch Hangzhou Blockchain Side Stage mentioned how Ripple utilizes blockchain to better the financial infrastructure in today’s world.
Yoshikawa touched upon ‘Interledger Protocol’ which facilitates a pathway for payments to move across various ‘digital asset ledgers’ while isolating senders and receivers from the risk of intermediary failures. This project aims to connect banks and financial services to a single network by reducing the fiction in global payments.
Ripple utilizes XRP, a ‘highly-scalable digital asset’ on the Ripple network, to reduce costs and improve performance for high-volume transfers. Ripple tries to look at the financial market from an end users perspective and has, therefore, come up with the product xRapid.
Yoshikawa, when asked if Ripple can disrupt the existing banks and financial services, said that their products not just help in reducing cost but also invents new opportunities in terms of creating new business opportunities and providing better entrance to financial services. She said:
“People tend to think that blockchain is a threat to existing financial services, but it’s not always the case. We are providing solutions to help banks become better, so they can provide better services to their customers.”
Yoshikawa also said that some ‘innovative banks’ look at this [XRP] as a way to create new opportunities. For example, Kotak Mahindra and Ripple’s collaboration aims to improve their cross-border remittances. The bank will be using the settlement solution of Ripple named xCurrent, enabling them to decrease the time associated with remittance payments by several minutes.
TechCrunch also reported that Yoshikawa believes that Asia is a crucial market for Ripple.
“Asia is the world’s center for remittance payments, there is a lot of money going into Asia and flowing out of Asia as well.”