XRP Furthers Lead on ETH
XRP is racing ahead of Ethereum (ETH) and is widening the gap—in terms of market capitalization—between the two.
At the time of writing this article, the difference in the market capitalization of the two cryptocurrencies was almost 5 billion USD. We reported yesterday that the difference between the two was of 2.5 billion USD. In just a day, the difference has almost doubled.
Needless to say, it is a result of the hard work done by the company behind the cryptocurrency, Ripple Labs, and the support of the strong crypto community of XRP.
The popularity of the cryptocurrency got a major boost in the recent event held by Ripple, Swell 2018. Colin Dinn, the Chief Technology Officer and Head of Operations at Siam Commercial Bank SEVP talked about how the 111-year-old bank reinvented itself with Ripple at the event.
In a recent Ripple Insights article, the company talked about its partnership with SCB. Talking about the primary pain-point of the customers in the ASEAN region, the company said:
“One of the most pressing customer pain points in the Association of South Eastern Asian Nations (ASEAN) region is remittances. Lacking a reliable and populated network of correspondent banks, the region faces abnormally high inefficiencies and costs for cross-border payments.”
Adding to it:
“With its customers distributed around the region, Thailand-based SCB sought a way to make remittances faster, easier and more affordable. True to their new spirit of transformation and modernization, they looked for a partner with vision and a culture of experimentation that would aggressively collaborate with them. According to Dinn, SCB desired a partner that had “aggressive ambition” and could “push the envelope of what’s possible and then define one step beyond.””
The article then talks about the four-step approach the collaboration started with:
“1. Understand the technology – Before implementing the new technology, SCB needed to take a deep dive with Ripple to understand how it could best address the bank’s remittance challenge.
2. Design the business model – This involved scoping out how SCB would alter its approach and required design elements, briefing senior management and securing final approvals. Dinn shared that this was a longer, more rigorous step than the previous and was completed in roughly six months.
3. Prove the capability – In July, SCB launched its new retail product in partnership with SBI Remit for the Japan-Thailand remittance corridor. Knowing this would require regulatory approval, SCB launched the product live in a sandbox with their regulator, the Central Bank of Thailand. With early success, SCB is now adding more retail partners and designing the criteria with the Central Bank that will enable it to move the product out of the sandbox.
4. Build a sustainable business – After demonstrating business value and future promise in the sandbox, the SCB team is building a framework around it to create a sustainable business unit. The focus for the team is how to build and scale this approach effectively.”
Talking about the last step:
“This last step is where the value of Ripple was truly unlocked. The partnership with Ripple has shown SCB that there is a better way to operate in the region. Dinn said the bank is committed to growing the initial scope of work beyond just facilitating remittance payments back to Thailand into crafting a regional clearing mechanism for payments. SCB believes the opportunity exists to build an entire ecosystem around these technologies for the broader ASEAN region.”
Talking about multi-hop:
“In one early expression of this growth, SCB announced in September that they will be the first to pioneer a key feature called “multi-hop.” In a region without a mature and pervasive correspondent banking network, this capability allows SCB to act as a middle stop to facilitate international payments between two banks that do not share a direct correspondent relationship. It’s a compelling way to reduce frictions and costs in cross-border payments that also helps SCB grow their business and reach.”
“(SCB) did not have this in mind when we started…all we wanted to do was make international payments a lot easier.”
He then wrapped the conversation up:
“Dinn wrapped up by explaining that the partnership with Ripple “goes beyond supplier-buyer” relationships and is instead a partnership to create and build something different than one might initially expect. For others seeking a similar path, Dinn suggests beginning with the key questions: “What problem are we trying to solve, and how will we get there?””