Banks are currently finding it difficult to use cryptocurrencies for their own benefit. About a year ago, the We.trade platform, developed by IBM, was launched, which is supported by a few heavyweights of the financial market. Yesterday, the consortium announced that the first transactions were successfully completed.
The platform was founded by the major European banks Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe Gererale and UniCredit. This consortium was created to solve the current problems faced by banks in cross-border payments.
These include long waiting times until the money actually arrives at the recipient and high transaction fees that often skyrocket as the transfer amount increases. For example, a transfer of $ 500 with Western Union costs $ 1, but it may take several days for the transaction to be transferred.
We.trade is based on the IBM Blockchain platform and is supported by Hyperledger Fabric. The We.trade solution offers its customers a simple user interface, new potential trading opportunities for cross-border payments and the possibility of using smart contracts.
Rabobank completing Transactions
Yesterday, Rabobank announced on its blog that the first transfers from 5 different banks were successfully completed. Roberto Mancone, COO of the platform We.trade, states that this is a great step forward and an important milestone in the further development of the project:
This live trading is a tremendous achievement for everyone involved. We.trade not only created a technical solution, but they also created true collaboration between multiple banks and improved the connectivity of the trading system. This is really a great collaboration at the highest level.
Currently, we.trade is active in 11 European countries and the number of members or prospects of the system is growing steadily. The live transactions over the past five days have been conducted between 20 different companies. Expansion into all European countries is planned for the coming years to convince more banks of the benefits of using blockchain technology.
With xCurrent and xRapid, Ripple also provides software solutions for companies looking to make cross-border payments easier, faster and more efficient. However, Ripple has suffered some setbacks in the recent past, as major banks reported a cautious conclusion on cost savings.
Still, there are some banks that use the XRP token to take advantage of the blockchain technology. Nevertheless, Brad Garlinghouse, CEO of Ripple, remains confident:
We expect at least one bank to use XRapid later this year. To 100%. Why? It is faster and it is cheaper.
The competition is getting harder and more intense due to the progressive development, regardless of how many companies are actually using Ripples’ technology. It remains to be seen which companies will succeed in the market in the long term.