Ripple being challenged? European Banks Complete First Live Trades on We.Trade Platform
The current market scenario for Ripple is pretty challenging and the past couple of days was a nightmare for Ripple. In addition to this Ripple has a competitor now in the payments space known as we.trade.
We.trade performs on Hyperledger Fabric and is an IBM blockchain-based cross-border money transfer platform. Hyperledger Fabric merges smart contracts with a simple user interface to provide a more efficient and cost-effective way for international trading. The firm majorly targets to improve the speed of transactions and the efficiency of cross-border financial transactions.
We.trade comprises of major banks such as Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe General and UniCredit.
In the recent past a group of major European banks, including Deutsche Bank, HSBC and Societe Generale, has completed the first live blockchain-based financial trades over their jointly developed we.trade blockchain platform.
Smart contracts are utilized by the platform to ensure better open account trade transactions. This is the first commercially viable open account trades using blockchain. The platform is designed in such a way to handle the whole process of order-to-payment transactions.
The CEO of we.trade, Robert Mancone explained,
“These transactions prove that we.trade is a robust and commercially viable proposition. The next step will be getting buy-in from additional banks and their customers in Europe and further afield.”
Roberto Rabasco, Co-founder of Orvium said, “The fact that mainstream financial institutions, along with a highly reputable company, such as IBM, have integrated Hyperledger technologies to offer cross-border transfers on the blockchain as a service to their customers highlights their recognition of the massive potential found in blockchain technology.”
The Head of Customer Propositions at HSBC, Omer Ahsan, illustrated a use case explaining,
“Last week three of our clients executed transactions using we.trade: Fluid Pumps used the platform to complete an open account transaction with a customer in Finland, GPS Food Group completed an intercompany transaction that included the use of a Bank Payment Undertaking and also executed two open account transactions with Paragon Quality Foods.”
Ripple promised to make payments faster, cheaper and more reliable using blockchain and cryptocurrency technologies is now facing the challenge from the we.trade platform. But one thing which the we.trade platform lacks is liquidity of solution. Ripple facilitates on-demand liquidity for cross-border transactions. In addition to this Ripple’s xRappid transactions are carried out within minutes.
Image via Shutterstock
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