Two California-based companies have teamed up to launch a pilot program that will enable financial institutions to test the capabilities of blockchain technology. Financial tech firm Expertus and blockchain technology company Ripple have combined services in order to create a platform that banks can use to test blockchain’s effectiveness by seamlessly integrating it into their existing payment infrastructure.
Blockchain technology is the driving force behind cryptocurrencies such as bitcoin and is widely considered to have tremendous potential in the future of finance. Through this venture, the two firms hope to increase awareness of the benefits of distributed financial technology. Major advantages for banks integrating the platform primarily include increased payment security and efficiency as a result of blockchain’s distributed ledger technology that consumers use to verify transactions.
Ripple’s distributed ledger technology, combined with the Expertus Payment Platform, offers financial institutions a unique tool with which to test blockchain’s feasibility of completing transactions. By integrating the platform into their existing payment framework with little business disruption, the banks will benefit from real-time payment execution, complete transparency into fees, and lower costs. The program is also said to lay the groundwork for global payment netting and settlement, as well as enhance banks’ liquidity management, per Expertus.
According to Expertus president Jacques Leblanc, “By providing this pilot program, we intend to help financial institutions move fast in the assessment of this new technology without the operational risk of a large-scale IT overhaul. Several banks have already joined the program and have realized the benefits of blockchain.”
Read more here: “This Company is Trying to Make the Blockchain Simple,” (Andrew Meola, Business Insider)