Banks around the world have invested significant resources into exploring Blockchain technology, and – that includes Canadian banks. But this year, the nation thrust itself into the centre of the movement that looks to turn Blockchain theory into reality when, in July, Canadian bank ATB Financial successfully sent money to a German bank via Blockchain technology — in just 20 seconds.
The payment was completed with help from the technologies behind the SAP HANA Cloud Platform and Blockchain FinTech company Ripple. In a statement, ATB Financial Chief Strategy and Operations Officer Curtis Stange said that the feat was significant for real-world adoption of Blockchain.
“Although we are very much still in the early stages of blockchain adoption, it was highly encouraging to see in a true demonstration the potential it has in transforming cross-border payments, making them almost instantaneous and reducing potential errors,” said Curtis Stange, chief strategy and operations officer, ATB Financial.
“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,” he added.
Reports this month suggest the Canadian market will work on strengthening its global position of implementing potential use cases for Blockchain technology.
Blockchain News reported recently that payments tech firm NetCents revealed a new partnership with The Vanbex Group, owners of Blockchain payments tool Genisys, to help banks in Canada implement the distributed ledger technology.
The collaboration is making some bold claims.
The union allows both companies to utilize each other’s strengths in order to develop the next generation of financial transactions by utilizing the emerging technology, the Blockchain. Blockchain technology has the potential to replace the over 30 trillion financial transactions per year currently processed by the Automated Clearing House (ACH) and the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
NetCents will be integrating Vanbex Group’s Genisys product, a Blockchain-integrated payment platform that offers a cost-effective, turn-key transaction messaging system for cross-border payments, to work in conjunction with the SWIFT and Clearing House Interbank Payments System (CHIPS) protocols.
It’s already happening, said Clayton Moore, CEO and cofounder of NetCents, especially when it comes to ACH payments.
“Blockchain is going to completely streamline that entire process,” he told PYMNTS. “It’ll be more of an instant payment. Right now, they’re taking three to five days in clearing,” he said of ACH payments.
NetCents isn’t the only company anticipating disruption to ACH payments by Blockchain technology.
The Deloitte Centre for Financial Services released a report in March that pinpointed ACH payments as a target for Blockchain disruption, and that Blockchain-based payments platforms could reach the scale and volume that ACH currently holds (at 23 billion transactions a year) by 2025.
“We believe that corporate payments may have a head start in adopting Blockchain technology, given the limited set of entities involved and the strong payment-transaction relationships corporates already have with banks,” Deloitte explained in its report.
Moore echoed this sentiment in an article at Blockchain News, explaining that B2B payments (along with consumer remittances) are definitely an area that could be most affected by the integration of Blockchain tools because of their potential to disrupt ACH and SWIFT so broadly.
But there is another side to the real-world application of Blockchain technology that Moore said could be just as big: the transmission of payments data via distributed ledger.
“That’s the big thing right now,” he said. “The big win for [banks] is to focus on the clearing side of things. The payment side of things is great, but I think there are bigger things going on in the clearing side.”
He pointed to Uber as an example, as consumers across the globe place their credit card information onto the app, but Uber then needs to disburse funds to all of its drivers. That, he said, is a process particularly applicable to the possibilities of the Blockchain.
“Anything to do with any sort of financial information is definitely going to be disrupted,” the executive added, whether it be B2B, B2C or C2C.
It’s the same sentiment expressed by SAP Senior Principal of Financial Services Kris Hansen when he spoke with PYMNTS about the motivation behind working with ATB Financial to conduct that 20-second cross-border payment.
“There are things we can do with Blockchain today — to implement solutions today,” he said. “It’s quite possible for us to take that technology and look at what we can do and implement that almost immediately.”
And, like Moore, Hansen highlighted the ability for distributed ledger technology to move more than money — settlement and reconciliation were also completed in 20 seconds during that transaction, he pointed out.
“This is what’s kind of new to the world, that the additional information you include about the payment is almost unbounded,” Hansen stated.
So, while the industry is hypothesizing about the speed at which money is moved, some of the players that are making Blockchain-based solutions a reality are shifting focus to the movement of information, too. That could pose a problem for ACH and SWIFT, both of which are the focus of faster payments initiatives.
Moore said he believes those efforts are all a response to the threat of Blockchain, as is the banks’ participation in the initiatives.
“Absolutely, banks are doing what they need to do to keep up,” he said. “I don’t know if it’s feasible for the marketplace, but that’s what’s happening.”
- Commodities Behemoth Testing Blockchain Tech with Crude Oil Cargo - January 21, 2017
- Berlin’s Neufund Blockchain Fundraising Platform Raises $2 Million - January 21, 2017
- Alibaba’s Ant Financial Aims for 2 billion Users by Bringing Blockchain Technology to Alipay - January 20, 2017
- ChronoBank Plans to Use Multiple Blockchains - January 20, 2017
- Hyperledger Welcomes New Blockchain Platform Partner Cello - January 20, 2017
- WISeKey and Stratumn Join Forces to Use Blockchain for Real-Time Accountability and Traceability in Enterprise Processes - January 20, 2017
- Blockchain Report – European Union Agency for Network and Information Security (ENISA) - January 20, 2017
- FINRA Seeks Comment on New Report on the Potential Implications of Blockchain - January 18, 2017
- Finlync Designs ERP Integration to Distributed Ledger and Blockchain - January 18, 2017
- European Central Bank Considering Digital Currency – Cryptocash - January 18, 2017
- US Homeland Security Testing Blockchain To Track People, Goods Across Borders - January 17, 2017
- Israeli Tax Authorities Might Go After Bitcoin - January 16, 2017
- Senior US Regulator David Blaszkowsky Joins Canadian Blockchain Intelligence Group (BIG) Advisory Board - January 16, 2017
- Seven European Banks Cut Blockchain Deal to Facilitate Easier Cross-Border SME Commerce - January 16, 2017
- Marketforce to Host 2nd Annual The Blockchain Summit on 28th March 2017 in London - January 15, 2017
- Waves Platform Implements New Blockchain Scalability Approaches - January 14, 2017
- China’s Puerbank Group Launches Global Node for A Standardized Blockchain-Based Digital Currency in the UK - January 14, 2017
- DU and Guardtime Partner with Dubai’s NMC Hospital to Revolutionize Electronic Health Records with Blockchain Technology - January 14, 2017
- Report: Blockchain Slated to Become $8 Billion Global Industry By 2024 - January 14, 2017
- Blockchain Could Save Financial Services $110 billion over Next Three Years - January 14, 2017
- Russia Embraces Bitcoin – No Plans to Ban Cryptocurrencies - January 14, 2017
- Canadian BTL Group Completes Blockchain Pilot With Major Global Energy Company - January 12, 2017
- Tokio Marine & Nichido Fire Insurance and NTT DATA Cut Blockchain PoC For Insurance - January 12, 2017
- HfS Research Recognises VirtusaPolaris for Emerging Blockchain Services in BFSI - January 12, 2017
- Deloitte Launches Blockchain Lab in New York - January 12, 2017
- SWIFT launches Blockchain Proof of Concept In Hyperledger - January 12, 2017
- Blockchain VIP’s to Gather for Major Retreat This Month - January 12, 2017
- IBM Watson Health and US FDA Announce Blockchain Healthcare Data Project - January 12, 2017
- Equibit Development Corporation Sets $7 million Funding Target, Crowdsale Date - January 12, 2017
- US National Science Foundation Offers $8.5m in Funding for Blockchain Proposals for Cyberinfrastructure Security - January 11, 2017
- China Poised to Dominate Fintech and Blockchain Markets in 2017 - January 10, 2017
- Respectonomy Social Network To Tackle Censorship Using Blockchain - January 10, 2017
- South Korea Plans to Launch a Full-Scale Pilot Project on Blockchain-powered Financial Services - January 10, 2017
- Postal Savings Bank of China (PSBC) Announces First Blockchain Financial Service - January 10, 2017
- Reserve Bank of India (RBI) Releases Bullish Report on Blockchain for Clearing, Settlement - January 10, 2017
- Blockchain TV – TED Talk | How the Blockchain will Radically Transform the Economy | Bettina Warburg - January 10, 2017
- Alfa-Bank and S7 Airlines Close Blockchain Deal in Russia - January 10, 2017
- Life.SREDA and the Russian Republic of Tatarstan To Introduce Blockchain Technology For Public Administration System - January 10, 2017
- Union Square Ventures Leads $4M Funding Round for Blockchain Startup Blockstack - January 10, 2017
- US Department of Energy Eyeing Blockchain Solutions for Security – Seeking Proposals - January 10, 2017
- India’s Axis Bank to Use Ripple Blockchain for Cross-Border Remittances - January 10, 2017
- Georgia to Store Real Estate Documents in Blockchain System with Bitfury Group and Hernando de Soto - January 10, 2017
- US Depository Trust & Clearing Corporation Selects IBM, AXONI and R3 to Develop Derivatives Processing On Blockchain - January 10, 2017
- Grantcoin Foundation Expands Board of Directors – Distribution Rescheduled to Late January - January 8, 2017
- UNICEF, UK Home Office and BTCC to speak at London Blockchain Week 2017 - January 6, 2017
- American Company The Seam to Form Cotton Blockchain Consortium with IBM on Hyperledger Fabric - January 5, 2017
- Move over Bitcoin – MIT Cryptographer Silvio Micali and his Public Ledger ALGORAND… The Future of Blockchain? - January 5, 2017
- Blockchain to Play Role in Future of Transportation? UBS Teams up with ZF and innology SE to Make it Happen - January 5, 2017
- Blockchain Group Hyperledger Expands into China - January 5, 2017
- The Evolution Of Casinos – Next Generation Transparent Ethereum Smart Contracts Based Casino “Edgeless” - January 5, 2017