Ripple Adds Siam Commercial Bank (SCB) to RippleNet To Explore “Multi-Hop” Feature
Ripple’s ecosystem thrives on the many innovations and branches that they have added since the start. RippleNet is a perfect example of this. The official website for the branch describes RippleNet as simply “a network of banks, payment providers, and others.” The point of RippleNet is to use Ripple’s rules to connect various buyers and sellers to make transactions more seamless.
Every added project and protocol centers around the RippleNet’s four main benefits – single point of access, speed, certainty, and cost. The network is so powerful and supportive that many countries around the world have integrated it into their own cryptocurrency projects.
In September, RippleNet made it possible for Japanese workers to send and receive money back to their families or to various accounts, while encouraging cryptocurrency participation. Not long after, Saudi Arabia added their National Commercial Bank to RippleNet, enabling their 5.5 million customers to have transparent and fast transactions, even across borders.
Just a week ago, news outlets were reporting on the massive success that RippleNet has had with implementation. They are presently available in 40 different countries, helping to keep up with the fourfold growth of remittance in the last few years. In the last year alone, RippleNet’s new connections have made it possible to reach over $2 billion in new entries to the market. Multiple companies have gone through RippleNet to make it possible, but all of these efforts have not been for just corporate gain.
RippleNet has also been a big part of an effort called Ripple for Good, which has been making a big difference in the world. This social impact program has been responsible to the improvement in financial inclusion around the world, but they also focus on Science, Technology, Engineering and Mathematics (STEM) and Financial Technology (FinTech) education. One of their biggest projects has been to improve literacy of finance, but also to support education for younger generations as well.
As many ways that RippleNet and Ripple have been a part of so many efforts, it seems that they will not be stopping any time soon. In an announcement this week, they showed that they can finally cross the barrier into traditional banking institutions. The Siam Commercial Bank, which was the first bank in Thailand, is now going to be a pioneer as the first financial institution on RippleNet to take on another new feature – “multi-hop.” Multi-hop is a protocol that will let SCB settle the payments for other financial institutions that are found n RippleNet.
By implementing this new feature, there is no need for two financial institutions to directly communicate to make a payment happen. Instead, SCB will receive and forward payments, and does not require a relationship with the other entity. Every bank simply connects to the SCB in somewhat of a speedier middleman. However, there is no additional fees and no connection with the bank.
The current state of global liquidity management is simply not working; it is not effective, efficient, or even simple. Ripple’s interaction with these financial institutions, especially with those connected with the Association of South Eastern Asian Nations (ASEAN), could be a catalyst for changing the way the entire industry handles these transactions. Smaller institutions were formerly unable to even make payments into ASEAN, but multi-hop democratizes this access.
However, the way that multi-hop helps the industry goes further than just baking institutions. RippleNet customers will see every payment be settled at a faster speed, fewer fees, and clearer transparency, all because of multi-hop.