Japan Bank Consortium and Korean banks to pilot DLT cross-border fast payments
The Japan Bank Consortium, a coalition of 61 banks in Japan organised by SBI Ripple Asia to explore uses of distributed ledger technology (DLT), has announced the launch of a new Ripple pilot with Woori Bank and Shinhan Bank in South Korea to deliver cross-border fast payments.
The pilot solidifies the Japan Bank Consortium’s commitment to modernise payment systems, specifically in the Japan/Korea corridor. Korea is Japan’s third-largest trade partner. The Consortium wants to send money instantly via a DLT blockchain, removing the need for intermediaries, while simultaneously reducing the cost of sending fast global payments.
Banks within the Japan Bank Consortium are one of many institutions that are actively working with Ripple to solve the multi-trillion dollar problem of a lack of tracking or speed capabilities in cross-border payments or trade finance instruments, with financiers, corporates and consumers worldwide keen to explore other options. The lack of monitoring and speed in traditional non-IP systems impacts liquidity (or cash management) and the ability to instantly send or receive low-cost international payments.