Blockchain technology firm Ripple, along with payment platform Expertus, want to make it easier for the world’s financial institutions to test out the blockchain. To do so, the companies announced Monday (June 6) a joint venture that lets banks and other FIs experiment with the technology to complete payments.
The Expertus Payment Platform and Ripple’s distributed ledger will combine into banks’ existing payments infrastructure so institutions can test out using the blockchain for real-time payments. The companies added that their service will also help banks gain deeper visibility and greater transparency into the cost of making payments.
Expertus and Ripple added that their tool will enhance liquidity management for banks and their corporate customers.
“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,” stated Expertus President Jacques Leblanc in a statement. “Several banks have already joined the program and have realized the benefits of blockchain.”
In a separate statement, Ripple Head of Channel Sales Steve Mollenkamp said their partnership looks to “make it even easier for banks and their customers to realize the benefits of distributed financial technology.”
“The newly launched pilot program will contribute to the growth of the Ripple network, enabling even more financial institutions to improve their cross-border payments,” he continued.
Major financial institutions have shown significant interest – and investment – in blockchain technology in recent months. But some industry players are looking to provide more guidance for bank users of the technology, or risk investing in a tool in the wrong way.
“Over the last eight to 10 months, we’ve seen a complete 180, from no one wanting to be the first to jump into this technology to, now, no one wanting to be the last,”Casey Lawlor, co-founder and director of marketing at Fluent, told PYMNTS earlier this year.