US Banking Giant PNC Goes Live On RippleNet

PNC Treasury Management becomes the first bank to start using the RippleNet blockchain payment network in the US.

According to a news report published on 3rd September, the bank is planning to offer its commercial clients instant, reliable, and cost-efficient cross-border payment solutions.

A spokesperson for PNC said:

“Using RippleNet will give us the ability to receive a payment from an overseas buyer against their invoices instantly, transforming the way they manage their global account receivables and allowing them to manage their working capital better.”

Chris Ward, executive VC and head of product for PNC Treasury Management, was equally excited about the move. He said, via email, that PNC will be the first major U.S. bank to provide commercial clients through RippleNet. He reiterated that PNC is counting on the power of blockchain for users to send money internationally with a frictionless experience within a secure, closed payment infrastructure.

PNC had first revealed its plans to use RippleNet back in September 2018. At the time, the announcement caused the value of Ripple’s digital token XRP to rise. 

Later on, Reuters reported that a division of PNC Financial Services Group Inc. (PNC.N) would use technology built by Ripple’s liquidity product, xCurrent, to process international payments.

By adopting the technology, PNC will be able to cut fees and waiting times in cross-border payments, giving it an edge over competitors.

Ripple’s Growing Partnerships

In June, Ripple had publicized its purchase of a 10% stake in MoneyGram, the second-largest remittances firm worldwide. This was part of a $30 million partnership with the company. A crucial stipulation in the deal was that MoneyGram would begin using xRapid.

The integration of XRapid is projected to help MoneyGram users to send money from one currency and get it instantly settled in the destination’s currency. The deal prompted Ripple CEO Brad Garlinghouse to acclaim that the MoneyGram deal will have a more consequential impact on the crypto markets than the Libra white paper.

Hostile Response from XRP Holders

More recently, the company announced the addition of Xendpay, an UK-based remittance firm, to its pool of clients for its global settlements platform, RippleNet. 

The collaboration will permit Xendpay to target new markets like the Philippines and Indonesia and support currencies that were inaccessible in the past.

However, the value of XRP has not increased despite the positive news and the recent announcement by a subsidiary of SBI Holdings - to offer its shareholders dividends in the form of XRP tokens.

On the same note, Garlinghouse was prompted to comment on several controversies surrounding the Ripple project. One of the stress points was about the token holders’ continuing frustrations about what they deem as a foul move for Ripple to sell XRP to its clients.