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Blockchain technology is finally transitioning from experiment to usability concept in the financial world. SAP, one of the largest networks in the industry, partnered with ATB Financial, Ripple Labs, and ReiseBank AG to send an international blockchain payment. Transferring funds from Canada to Germany was a breeze, and the cost was minimal compared to traditional means.
Collaboration is a key component of making blockchain efforts a global success. With parties representing different continents, this cross-border payment transfer using blockchain technology was completed successfully. In total, ATB Financial transferred CA$1,000 to ReiseBank AG. The network used for this transaction is built on top of SAP and has elements of Ripple’s pioneering network of enterprise blockchain solutions.
Ripple Blockchain and SAP Are A Potent Combination
Instead of taking between two and six business days, the transfers was completed in 20 seconds. This is quite a significant gain in transaction time, and one of the clear examples of how powerful the blockchain is. This disruptive technology removes the need for settling with counterparty banks and recording accounts.
ABT Financial COO Curtis Stange told the media:
“Using SAP HANA Cloud Platform, we’re able to experiment and be nimble with emerging innovations like blockchain. The next stage for us, working with SAP and Ripple, will be to understand how the front-end experience should work for the benefit of our customers.”
Bitcoin is built on top of blockchain technology as well and has allowed for instant and frictionless transfers for seven years. It is only now this technology is making its way to traditional finance. A proof-of-concept for this transfer was developed by all parties in just nine business days. SAP [NYSE: SAP] provided a mobile user interface to execute the payment, which made it easier for all involved parties to see the process unfold in front of their own eyes.
By connecting the SAP HANA Cloud platform and the SAP Payment Engine with Ripple’s network, nearly instant transfers can be achieved. It is also positive to see banks such as ATB and ReiseBank AG take an open-minded approach to using blockchain technology. A proactive mindset is required to wield this technology in a positive manner.
Source: SAP News
Header image courtesy of Shutterstock
