Thailand’s Siam Commercial Bank (SCB) is set to deploy the RippleNet multi-hop feature, becoming the first RippleNet member to use the functionality.
Through the new multi-hop feature, SCB can execute frictionless payment settlements on behalf of other financial entities in Ripple’s enterprise blockchain network.
The feature will phase out the requirement for a direct one-to-one connection for payment settlement.
The aim of the new feature is to manage global liquidity more effectively in the Association of South Eastern Asian Nations (ASEAN). Currently, countries in this region have to first convert currency into USD, settle payments through correspondent banks, and then exchange it to the currency used at the beneficiary institution.
“With multi-hop, financial institutions can connect directly to SCB, which can settle and payout across the region without exchanging currencies multiple times and adding heavy fees. The result is a seamless payments experience into and out of the ASEAN region,” Ripple said in a statement.
The RippleNet multi-hop feature will also enable businesses associated with RippleNet execute payments with more transparency and with lower fees.
Transferring money around the world can have a number of issues. Building a frictionless platform that allows businesses and customers to use Ripple’s enterprise blockchain network is essential.