Some Standard Chartered have also started the using of

 

Some key advantages of Blockchain will impact the
following areas

Usually
intermediary clearing firms are involved in processing of Interbank payments, which
consists of complicating processes such as bookkeeping , transaction
reconciliation, balance reconciliation and payment initiation etc. Processes
are highly manual or papers based and have many steps, hence the transactions
become costly and time taking. For example in cross border payments the clearing
process for each country is different and the payments require few days to
arrive, which is a slow process as well as costly due to the involvement of
intermediaries. In such scenario, blockchain technology has the potential to make
such transactions more efficient and less costly as well as increase the transparency
and traceability. It will bring transparency to cross border supply chain
especially for high value and controversial products. An estimation made by
McKinsey in the below figure shows the reduction of Cost of each transaction in
Cross Boarder Payments due to the blockchain’s applicatio

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Rabobank
has been involved in the use of blockchain technology as well as Ripple Lab’s
blockchain Ripple Protocol. In December 2014, it was declared that three banks
had started blockchain technology to try out the blockchain technology for
cross border transactions as well as for payments to customers. Ripple has
stated that during the international payment process a 33% reduction could be
gained by banks on its technology in their operating costs and payments will be
made in seconds. Ripple can be used by banks to replace intermediaries for the
payments. The National Australia Bank and Standard Chartered have also started
the using of Ripple Ledger’s Technology for cross border transactions. It will
identify the existence of something to be traded, prevent duplicate
transactions and hold the record of transaction in case of dispute.

Blockchain
Technology has a significant potential to disrupt the clearance and settlement
process. Normally, it takes 2 to 3 days (T+3 or T+2 settlement period) to settle
a stock trade in a typical trading clearing process cycle due to the
involvement of intermediaries and paper intensive processes but by employing
blockchain technology it is possible to digitize and authenticate records
without any central authority. It will reduce cost, speed up the process and
mitigate the fraudulent activities as well as secure the transactions with
digital records and the related data will be visible to all participants in the
trade transactions.