Cross-border payments is one of the many industries to benefit from blockchain technology. The Royal Bank of Canada seems to be thinking along the same lines. They are working with DLT to conduct faster and cheaper transfers to and from the US. This entire system is built on the Hyperledger platform. It will be interesting to see how this platform plays out. RBC may get a major competitive edge over the other Canadian banks if this trial is successful.
Many banks around the world have kept a close eye on blockchain technology developments. Ever since Hyperledger came around, there have been more experiments with DLT in general. Royal Bank of Canada is just one of the many institutions to see how this technology behaves. Right now, the bank wants to improve its cross-border payment solutions to and from the US. Blockchain can allow for quicker and cheaper transactions in this regard.
A Major DLT Trial for Royal Bank of Canada
According to a spokesperson, this project is known as the shadow ledger. It lets the Royal Bank of Canada monitor payment in real-time That in itself is a pretty interesting development. No other financial technology currently allows for doing so in real-time right now. This trial has been in development for over six months and was officially launched last week. It is unclear how long this experiment will last. It is a good way to test the capabilities of this technology without making existing infrastructure obsolete.
Royal Bank of Canada’s Martin Wildberger states:
“We at the Royal Bank of Canada wanted to set it up as a shadow ledger so that we can demonstrate our leadership in exploiting that technology while at the same time recognizing that the technology is still early in its adoption phase.”
While it is true DLT has plenty of potential, it will not necessarily be beneficial to every institution. Faster and cheaper payments are a great option to explore. However, this is not the only area of interest to RBC right now. They are also working on loyalty services and consumer rewards. Both of these concepts will make use of blockchain technology as well. While there will be hurdles along the way, no one can deny the potential is there as well. An interesting situation to keep an eye on.
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