It has been announced that American Express account owners can now use blockchain technology to complete their cross-border transactions.
Marc Gordon, American Express CIO and executive vice president said:
This collaboration with Ripple and Santander represents the next step forward on our blockchain journey, evolving the way we move money around the world
Ripple is a fintech startup with offices in several locations such as San Francisco, New York, London and so on. The company provides “one frictionless experience to send money globally using the power of blockchain”.
According to the information given by the company, customers, using FXIP platform will be able to route their payments through Ripple’s blockchain network before they directly send their payment to the Santander, which is a financial services provider in the UK, accounts they owned.
As it has been shared, this new blockchain-enabled payments system is aimed to reduce the time and cost of settlement.
Ripple CEO Brad Garlinghouse noted:
Transfers that used to take days will be completed in real time, allowing money to move as fast as business today.
Providing an applicable trial for blockchain use in financial services, the company also intended to connect customers from the US and the UK.
José Luis Calderón, global head of Santander Global Transaction Banking, shared:
This blockchain solution opens up a new channel between the US and the UK and presents significant opportunity for payments globally.
There is no doubt that financial service providers are currently working on different technologies in order to bring innovative solutions for their clients.
Thus, blockchain is one of the popular topics which have been seen as an important opportunity by financial companies. It is considered as a revolution and completely decentralized technology; hosted on millions of computers simultaneously.
The information blockchain has in it is public, verifiable, and also “incorruptible”, because there isn’t an opportunity such as its centralized version, to hack or lose it.
Even many companies in banking sector have already started to look for new solutions powered by blockchain technology; Amex and Santander are the first companies who publicly used it in terms of financial solutions.