British multinational bank Standard Chartered announced it has completed its first real-time cross-border payment utilizing the blockchain technology. The transaction to a “major correspondent bank” took less than 10 seconds, with full transparency of fees and forex rates.
“This initiative is an integral part of our digitisation agenda in the area of distributed ledger technology as we continue to explore new ways of adding value to our clients and the industry,” said Alex Manson, Global Head, Transaction Banking, Standard Chartered. “Digitisation is a priority for the Bank to better serve our clients by connecting business communities in a more efficient way. Payments innovation is a key area of focus in order to bank our clients’ ecosystem and make it more cohesive, reduce risk and increase transparency.”
Standard Chartered expects that when blockchain is fully commercialized, the business will have the ability to access and make cross-border payments in real time, at any time of the day, without being restricted by cut-off times. Furthermore, blockchain would provide greater control over the payments and lower costs.
Earlier this week IBM released the results of two surveys – among 200 banks and 200 financial markets institutions, which showed that the large multinational banks are among the early adopters of the blockchain technology and 15% of the banks are anticipating to adopt a commercial blockchain technology by the end of 2017.