Euro Exim Bank is the first one that uses XRP-powered xRapid, and it seems that they want to use more of Ripple’s tech.
Their primary plan these days is to test a new trade finance system.
Ditching SWIFT for Ripple
We recently reported that they just ditched the traditional payments system SWIFT and decided to go with Ripple’s innovative solutions for cross-border payments.
It seems that one of the bank’s transactions got lost this month on the SWIFT network and this is the main reason for which it’s time to move on to better and safer products such as the tech used by Ripple.
“It was lost somewhere in the quagmire of a central organization, and we have no visibility on where it is. All the counterparty says is, ‘We have not received your message.’” the bank said.
The bank plans to use xCurrent
Euro Exim Bank’s head of compliance and operations Graham Bright told Global Trade Review it intends to use Ripple’s xCurrent to power the new pilot.
“While Ripple has so far focused its xCurrent product on payments messaging only, Bright says the two parties are now preparing to pilot a capability that embeds trade finance instructions into an xCurrent message,” he said.
Bright continued and explained that “This is similar to what Swift offers today, but on a blockchain-based network that allows for real-time exchange without a middleman. ‘The idea is – apart from just the payment instruction – what if we use the message to transmit a trade finance instruction directly to a counterparty? It could be a letter of credit or a performance bond. Technically you are able to transmit the whole of that message via xCurrent.”
Euro Exim Bank also said regarding xRapid that they plan to roll out the tech for commercial production in Q1 2019.