Remittances on blockchain now possible for ComBank thanks to Ripple partnership

Transfer of funds to see an improvement thanks to this DLT protocol

Sri Lanka-based Commercial Bank of Ceylon (ComBank) has reportedly signed an agreement with Ripple to power its remittance service with blockchain technology. According to the report, the financial institution is yet another bank joining the RippleNet (Ripple’s Network) to enable the transfer of funds via the blockchain-based payment protocol of the company.

The moment of the partnership saw the Managing Director of the ComBank, S. Renganathan and RippleNet Senior Vice President of Global Sales, John Mitchell exchanging the agreement, with the COO of the bank Sanath Manatunge witnessing the event, along with various representatives from both entities.

Now, the bank is able to enjoy the benefits of remittances being carried out on a blockchain platform.

Which Ripple’s product the bank will use

By agreeing with Ripple, the bank has access to the RippleNet, a blockchain payment protocol that enable financial institutions to carry out remittances seamlessly via the San Francisco-based online infrastructure. However, the network has two different access option: Standar (xVia) and Full (xCurrent).

Both of them share some functionalities, such as sending payments through a standard API connectivity, payment status with end-to-end transparency, and real time settlement. However, xCurrent stands out with receiving and providing guaranteed transactions fees, whereas xVia only allows for receiving them prior sending a payment; and the option to contribute to a single rulebook, which help standardizing the payment network.

Per the news, it was not specified which of these products ComBank will use, although it states that the funds will be sent and received with “and end-to-end” tracing and tracking solution, and remittance of lower denominations will be viable due to the low fees only possible with the aforementioned blockchain technology. Since it is a first time for this bank, it is probable that they will test the network with xVia as their chosen solution.

Despite their election, the fact that this bank – considered one of the top 100 banks worldwide – is acknowledging Ripple’s commitment towards a “frictionless experience to send money globally”, joining other important financial institutions already running their services on this platform, only means that the company is walking the right path to achieve their goal.

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