Top ten PNC announced that it will use Ripple’s blockchain solution, xCurrent, for international commercial payments.
UU., it will use RippleNet to process international payments for its customers, Ripple announced on Wednesday, September 19.
As Reuters reports, one unit of PNC in particular, Treasury Management, will use Ripple’s blockchain solution xCurrent to accelerate overseas transactions maintained by U.S. business customers.
Ripple emphasizes that xCurrent will allow PNC business customers to receive payments against their bills instantly, changing their approach to managing both accounts and their working capital.
Ripple’s senior vice president of Product Management, Asheesh Birla, believes that using xCurrent in banking is the first step towards adopting other Ripple products, such as the xRapid solution to be launched in a few months. “It’s a way [for banks] to put their finger in the water,” Birla told Reuters.
The news comes despite the fact that some Ripple employees were skeptical about using xCurrent in cross-border payments. As reported in June, Ripple chief cryptographer David Schwartz said banks were unlikely to implement the technology due to low scalability and privacy issues.
With 8 million customers and retail branches in 19 states, it joined other global financial institutions that had previously partnered with Ripple.
For example, in late 2017, American Express announced that it was creating a Ripple-powered app for B2B payments between US corporate customers and Santander UK customers. Later in March, a Japanese banking consortium stated that it will launch a Ripple-based “MoneyTap” instant domestic payments mobile app.
And in April, wrote that Spanish bank Santander launched Ripple’s blockchain-powered payment network One Pay FX, reportedly becoming the first international bank to do so.