The cooperation with Ripple comes as a part of the bank’s wider initiative to enhance its remittances network with advanced technologies, since “the Ripple platform ensures cross-border transactions much safer and secured,” as per the statement.
At the same time on March 28, Federal Bank’s two new blockchain-backed payments platforms have gone live in the United Arab Emirates (UAE), one of which allows non-resident Indians (NRIs) to easily transfer money through exchange houses and banks via a Virtual Payment Address (VPA).
Federal Bank has been looking into the prospect of blockchain implementation to increase its share of the business. The bank’s CEO Shyam Srinivasan once referred to the bank’s adoption of blockchain as a natural development “to offer the latest technology to our customers and remittance partners such as exchange houses and banks.”
Earlier this year, a consortium of 11 banks called Blockchain Infrastructure Company, including second-biggest lender Kotak Mahindra Bank, State Bank of India and ICICI Bank, reportedly planned to roll out India’s first blockchain-linked funding project for small and medium enterprises.
Previously, The Institute for Development and Research in Banking Technology in India has published a blockchain blueprint for its banking sector, reported by The Crypto Sight on January 26.