PNC Bank to Join RippleNet to Use Ripple’s xCurrent
PNC, which has more than 8 million customers, and many branches in nothing less than 19 states, PNC, is joining the over 100 financial institutions that earlier partnered with Ripple. The bank, have many customers including business and large firms which uses its banking services. Chris Ward, the Executive VP and Head of Product, PNC Treasury Management said:
“As the global economy becomes increasingly digital, the need for real-time payments globally is critical. We are focused on providing our clients with capabilities that enable making secure digital payments in an instant, whether they are sent across the street or across the world.”
Now that it has joined Ripple, expectations that the fintech company will impact the bank positively are high. The ease of money transfer across the border will increase the bank’s number of patronage.
Over the past few years, banks have been ramping up their investments in distributed ledgers, an umbrella under which so-called blockchains fall, in the hopes that it can help them streamline some of the most cumbersome processes. Despite the fanfare, few blockchain systems have been deployed so far.
Numerous banks have tested or deployed xCurrent, which uses “bi-directional messaging” that can eventually plug them into distributed ledgers, but that “is not a distributed ledger” itself, Ripple’s Chief Technology Officer David Schwartz. He added banks were unlikely to use distributed ledgers for payments for now. Marcus Treacher, SVP of Customer Success at Ripple commented:
“For far too long, the technology underlying cross-border payments has been opaque, slow and costly. PNC, as an innovative and forward-thinking institution, understands the promise of emerging technologies like blockchain.”
“Quite a few payment providers have joined RippleNet recently, so it’s great to see one of the major U.S. banks come on board as well. We view that as a sign of a diverse, healthy and growing network.”
Asheesh Birla, Ripple's senior vice president said it is “exciting” to see Ripple's efforts begin to be implemented, particularly in emerging and under-served markets. The executive also addressed reports suggesting Ripple's xRapid product would be launched in the next month or so. Birla said:
“We haven't officially announced a timeline. I think we're really excited about xRapid, I personally am really excited about how our customers in the pilot phase of xRapid like the experience.”
Ripple announced Wednesday that it has clients in 40 countries across six different continents now, having opened new payment corridors to parts of East and Southeast Asia, Africa, Europe, and South America.