The world’s third-largest financial services technology firm Finastra has recently entered into a partnership with Ripple to enable its customers to use the RippleNet blockchain network.
With the cooperation between the two firms, Ripple’s more than 200 existing clients will be able to access the extensive banking network of London-based Finastra, including 48 of the world’s top 50 banks according to Fintech Times Oct. 16 report.
A “global behemoth” Partnership
Finastra came about in 2017 as the establishment of “a global behemoth in the market for financial software” at the time after Misys and D+H merged.
Cross-border transactions for existing RippleNet partners and Finastra customers will occur under transparent oversight and end-to-end tracking of status, fees and the delivery time as per the Fintech Times report.
For speed improvement, Ripple’s cloud solution will host the customers. Ripple’s XRP-powered On-Demand Liquidity solution will also be another option to use as it purportedly enables international payments to be done in just a 3-second settlement time.
Senior Vice President of FMS, Finastra Riteesh Singh issued a statement revealing that Finastra’s ‘belief that the future of finance is open’ is what influenced the firm’s collaboration with Ripple.
In jurisdictions where the corresponding banking costs tend to be high, blockchain technology use would prove to be beneficial for clients according to him.
Persistent community controversies
The first company in the United States to commence use the RippleNet blockchain network to facilitate cross-border payments was the eighth-largest bank in the country PNC (having nearly $400 billion in assets) in August.
Nonetheless, Brad Garlinghouse — CEO of Ripple— has during recent interviews been responding to several Ripple-related controversies on the continued lag of the XRP token’s price.
On Oct. 9, he specifically told Anthony Pompliano — co-founder of Morgan Creek Digital Assets — that the attack came about due to the company’s transparency policy.
Since Ripple sells XRP at 10 daily market volume basis points, 99.9% of XRP volume is not in connection with the sales of the company — Garlinghouse emphasized when addressing ongoing concerns over Ripple’s handling of XRP token sales.