First Bank That Used xRapid To Try Trade Finance System With Ripple Blockchain

By Prashant Jha

Euro Exim Bank, which had been the very first bank to try out and use the xRapid cross-border payment solution crafted by Ripple, is now planning to use the same crypto company’s blockchain, the Ripple blockchain, to try out a brand new trade finance system.

In a recent statement to a media outlet, Graham Bright, who currently heads compliance and operations in the Euro Exim Bank, explained how the bank was planning to make use of Ripple’s blockchain technology, its xCurrent to do this pilot run. He said:

“While Ripple has so far focused its xCurrent product on payments messaging only, Bright says the two parties are now preparing to pilot a capability that embeds trade finance instructions into an xCurrent message.”

Apparently, the new system that is being devised, will be quite similar to how the SWIFT banking codes work at present, but with a twist. The Ripple-based system will allow the banks to effect a direct exchange in the real-time while eliminating the middleman from the deal. Bright explained the concept in simple terms by saying:

“The idea is – apart from just the payment instruction – what if we use the message to transmit a trade finance instruction directly to a counterparty? It could be a letter of credit or a performance bond. Technically you are able to transmit the whole of that message via xCurrent.”

With regards to the xRapid solution it already uses from the house of Ripple, Euro Exim has told the media that it has plans in place to implement a commercial rollout for that technology very very soon, within the very first quarter of this new year. That means that we can expect the rollout to come within the next two months.

The Euro Exim Bank even released some video content recently, where it said that this particular technology, powered by Ripple, was capable of not just transforming the space it is in, but also ushering in a whole “new era” for creative, unique, out of the box payment solutions.

Euro Exim is a bank meant to serve import and export companies, that was founded in 2011, about 8 years ago, with offices in St. Lucia and London. Its faith in Ripple seems immense and we cannot wait to find out how the pilot project will go.

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