U.S. bank PNC has begun using RippleNet to facilitate cross-border transactions, reports said Thursday (Aug. 29).
Fintech Futures reported that PNC is the first U.S. bank to use RippleNet’s blockchain network to move money across borders. The solution is available to corporate clients of the bank’s PNC Treasury Management unit, according to reports, and will enable PNC to offer businesses real-time global payments.
Using RippleNet, PNC Treasury Management can enable business clients to receive payment on their outstanding invoices from their overseas corporate buyers in real time, with the aim of supporting enhanced cash flow management.
PNC first announced its plans to join RippleNet last September. At the time, PNC Treasury Management Executive Vice president and Head of Product Chris Ward said corporates demand access to real-time cross-border payments.
“The speed of doing business continues to accelerate, and the efficiencies of RTP [real-time payments] allow our clients to not only keep pace, but stay ahead,” he said at the time.
Ripple SVP of Customer Success Marcus Treacher said in another statement in September that “PNC, as an innovative and forward-thinking institution, understands the promise of emerging technologies like blockchain.”
Earlier this year Ripple said 13 more financial institutions had signed up for RippleNet, including Euro Exim Bank and Ahli Bank of Kuwait, bringing the total number of financial institutions signed up for the service to more than 200.
News of RippleNet’s first U.S. bank using the cross-border payments technology came the same week another blockchain company, we.trade, marked its own banking first.
HSBC this week announced it became the first bank to use we.trade’s blockchain solution to complete a trade financing transaction, a feat completed amid we.trade’s second round of pilot tests, the companies said.
“This is the first transaction where we have had two buyers use the system end-to-end, including the ability to write the invoice, agree to trade terms, provide the BPU [bank payment undertaking] and additionally receive funding off the back of that BPU,” said HSBC U.K. Head of Global Trade and Receivables Finance Ian Tandy in an interview with Global Trade Review.