The move will help reduce the resources required by customers to send payments. Customers will have end-to-end visibility of transaction and be able to perform instant transfers to beneficiaries without spending a lot of money on costs.
The bank now becomes the first in Middle East to use blockchain to facilitate cross-border payments. UAE is fourth top remittance-sending country in the world. It accounts for more than $19 billion in remittances.
NBAD’s managing director and head of global transaction banking, Vineet Varma, said:
“We’re always exploring new ways to enhance our customers’ experience. With blockchain, we hope that we could address the needs of our customers and drive forward more efficient and flexible service. Embracing technologies like Blockchain is a step in right direction for our customers”.
Brad Garlinghouse, Ripple CEO added,
“Banks and their customers have been hearing about the promise of blockchain technology to enable real-time cross-border payments. However, some of the most innovative and successful banks like NBAD are making this a reality by offering Ripple-enabled payments to their entire customer base, and in doing so, paving the way to make 2017 the year we see broad commercialization of blockchain take hold globally”.The bank joins others including Santander, Standard Chartered, and UniCredit that use Ripple blockchain. It is yet another big boost for Ripple’s cryptocurrency XRP.