NAB joins Westpac in global blockchain network

Elizabeth Barry 16 September 2016

blockchain

The two Australian banks have joined distributed financial technology provider Ripple.

Global settlements solution provider Ripple has announced that NAB will be joining its global network, along with Westpac which is already a member. Financial institutions joining Ripple's network are seeking to cut costs of their payments transfer as well as reduce transfer time.

The banks that are part of Ripple's network have successfully used its distributed financial technology to transfer money and are looking to implement the solutions commercially, the company said. Other banks that are part of the network include Santander, UBS, Royal Bank of Canada and National Bank of Abu Dhabi.

chris larsen ripple

Chris Larsen - Ripple

Ripple's CEO and co-founder Chris Larsen said financial institutions looking to use blockchain for payments and settlement rather than as an experiment are forward-thinking.

“The continued growth of the Ripple network represents a major endorsement of our open approach to connecting the world’s banks and their customers. Together we are building a modern payments system to enable new economic opportunities and the seamless flow of value around the world," he said.

Ripple's system allows banks to transact directly and with "real-time certainty" in order to improve their cross-border payments offerings.

While only two Australian banks are currently part of Ripple's network, other banks have also been experimenting with blockchain. In August, CommBank took part in a worldwide blockchain test with financial innovation company R3. CommBank, along with 15 other banks from across the world, successfully completed two prototypes to show how distributed ledger technology (blockchain) can work for trade finance.

The announcement from Ripple coincides with the provider's announcement that it has completed a $55 million Series B funding. It plans to use the funds to accelerate its rapid customer growth, pursue partnerships and grow its international team.

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Images: Ripple, Shutterstock

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