San Francisco - Ripple, the provider of financial settlement solutions, has announced that a number of global banks are joining forces to establish the first interbank group for global payments based on distributed financial technology. Bank of America Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac Banking Corporation, and Royal Bank of Canada are the founding members of the organization, known as the Global Payments Steering Group (GPSG).
The GPSG will oversee the creation and maintenance of Ripple payment transaction rules, formalized standards for activity using Ripple, and other actions to support the implementation of Ripple payment capabilities. CIBC will also join the GPSG as a new member.
"The creation of GPSG is significant because this represents the first time that major banks have formulated policies to govern the transfer of money across borders using blockchain," said Donald Donahue, Chairman of GPSG and former President & CEO of The Depository Trust & Clearing Corporation (DTCC).
These banks are working with Ripple in an effort to reduce the time and cost of settlement while enabling new types of high-volume, low-value global transactions. By coming together to form the GPSG, they aim to lay the foundation for a modern payments network underpinned by Ripple's solutions and supported by rules and governance for global settlement.