Visa Europe Collab and BTL Group have unified to explore the potential applications for blockchain technology in financial services, the two companies said on Thursday in separate statements.
The two companies will use Interbit, BTL’s cross-border settlement platform, in order to test their concept that the use of blockchain technology in the financial sector can ensure low-cost interbank payment and settlement service. It will reduce the friction of domestic and cross-border transfers between banks and will result in lower costs, settlement time and credit risk. It can also leverage smart contracts to streamline and automate many of the regulation and compliance requirements of domestic and international transfers.
“The PoC [Proof of Concept] will deliver a first-of-its-kind blockchain-based settlement system, and we are pleased to be working with BTL to explore its implications and opportunities for our industry,” Visa Europe Collab said in the statement.
More partners are expected to join in on the project as a few European banks have been invited. Participating banks will connect to the network and send funds to other banks in the network across multiple currencies.
Visa Europe Collab, launched in May 2015, is Visa Europe’s innovation hub that deals with digital and fintech partners to identify the new ideas in payments and help bring them to citizens.
Canada-based BTL Group develops in-house blockchain technologies. Its product portfolio includes blockchain platform Xapcash and the above-mentioned cross border settlement technology Interbit, which uses distributed-ledger-technology, ethereum, and solidity smart contracts.