PNC Bank’s division, a top ten bank in America with more than $400 billion in assets, has joined RippleNet to access its popular blockchain solution for cross border payments and settlement.
PNC Treasury Management will use Ripple’s technology to process international payments. This is another indication of the potential use of blockchain in mainstream finance.
Ripple is developing several blockchain-based solutions that enable cross-border money transactions between banks in a faster and cheaper way than the current systems allow.
As noted by Ripple, PNC Bank serves over eight million customers and has retail branches in 19 states, which helps the third-largest cryptocurrency by market capitalization to enhance its position within the US banking sector. Today’s agreement with PNC Bank signifies that things are moving into a higher gear.
Big Guns embraces Blockchain
Ripple was in the news recently after it announced a $30 million investment in global money transfer company MoneyGram. This is significant because Ripple’s digital currency XRP will be used in the MoneyGram cross-border payments process.
MoneyGram was one of the major money transferrs that has been using Ripple and XRP to pay. Western Union was also testing Ripple’s blockchain-enabled cross border payments. However, the company’s executives stated that they haven’t yet found a “silver bullet” in this area.
Swift’s main rival, Ripple, has been gaining more than 200 members. This includes industry leaders like MoneyGram and PNC Bank as well as many global banks. Compared to the services of the bank cooperative that were launched 40 years ago, Ripple’s payment-messaging network is used by over 11,000 financial institutions worldwide to transfer money.