PNC Bank Joins RippleNet
In a recent blog on Ripple Insights, the company announced that PNC Bank has joined RippleNet.
PNC Bank is one of the top ten banks in the United States, and now with the help of the partnership, its customers would be able to receive the benefits of the real-time cross-border payments system. The blog says:
“With more than 8 million customers and retail branches in 19 states, PNC has a diverse set of customers, including consumers, small businesses and large corporates. Ripple’s technology will have an immediate impact on each of those groups, enabling PNC’s commercial clients to receive payments from overseas banks in real time.”
The blog goes ahead and explains a use case for the system:
“Now, a commercial client in Pennsylvania receiving a payment from a UK buyer will be able to receive payments against their invoices instantly, transforming the way they manage their accounts receivable and allowing them to better manage their working capital.”
Speaking about the addition of PNC to the list of partners of RippleNet, the blog says:
“The addition of a top U.S. bank like PNC on RippleNet fuels the network’s positive momentum. RippleNet has grown to more than 100 financial institutions and continues to expand steadily each month. RippleNet has also recently expanded its reach to over 40 countries and six continents.”
Some of the other leading financial institutions of the world on the network are American Express, Banco Santander, and the Japan Bank Consortium led by SBI.
Another Ripple product, xRapid is all set to make it out in the commercial world. Sagar Sarbhai, Ripple’s head of regulatory relations for Asia-Pacific and the Middle East, said that the company would be launching xRapid the “next month or so”. In an interview with CNBC, he said:
“[xRapid] uses a digital asset called XRP and that really is a mechanism to source liquidity in real-time. We’ve been working on this project for the past two to three years and I think I’m very confident that in the next month or so, you will see some good news coming in and we’ll launch the product live in production”
When asked about whether the reluctance, that xRapid faces from the banks, has been about regulation, he said:
“Maybe that was the case a year ago, but things are changing now. For example, countries like Thailand—they have come up with really sophisticated crypto frameworks to help figure this innovation where banks and financial institutions, payment providers can then leverage the power of digital assets for payments. We are standing here in Abu Dhabi; ADGM came up with a very sophisticated framework to boost institutional participation where financial institutions and payment providers can use digital assets like XRP for their liquidity needs. So I think that narrative is now changing. Of course, there are countries which are sitting on the fence and looking at how things are going, but I think it’s all positive and I will see more and more banks and payment providers start using the digital assets.”
He then talked gave reasons why XRP is not a security
“Number one, if an investor buys XRP, you do not get a stake in the company. You do not get any dividends paid out from Ripple the company. That’s number one. Number two, Ripple and XRP are two different things. So tomorrow, let’s say, for whatever reason, Ripple the company goes away, XRP ledger will still stay. XRP ledger is open source—anyone can use it. You and I can use it. Number three, XRP ledger uses a consensus mechanism where there is a need for validators. Now, again, it’s an open-source software, anyone can download it and Ripple the company—so there are around 150 validators today, out of which Ripple the company only owns around 10, which is around 7 percent. So, we do believe that XRP is not a security. Having said that, it is really up to the SEC to decide what they will. But that being said again, we are not seeing that layout in other parts of the world. Thailand, for example, came with a new asset class called digital assets and they said that XRP would be one of the seven digital assets to be allowed to be traded. Similarly in Australia, in the Phillipines—most of these countries have actually said that XRP and other digital assets are either commodities or a cryptocurrency. ADGM also classified XRP, among other cryptocurrencies, as a commodity. So we are not really worried, to be honest.”