The US-based payment network provider Ripple Labs announced that German bank Fidor is going to use Ripple protocol.
This is the second forward-thinking decision made by German bank this year. Fidor has earlier partnered with Kraken bitcoin exchange with headquarters in San Francisco.
The announcement is a promising sign for other decentralized payment protocols, which are looking to establish credibility within traditional financial circles.
By integrating Ripple protocol into its transaction infrastructure, Fidor will provide its customers with faster and more affordable money transfer options. The bank will proceed intra-bank transactions between branches and payments with different organizations.
Chris Larsen, the CEO of Ripple Labs, said:
“Ripple is changing the rules of the game for financial institutions, enabling real-time settlement in any currency to strengthen customer relationships and positively impact the bottom line.”
“As an innovator and leader in the banking industry, Fidor is using Ripple to define a new standard for what a bank can be and how it can serve its customers.”
Ripple’s open-source approach to payments allows banks to replace many intermediaries, thus passing on savings to partner institutions and their clientele.
The CEO of Fidor Bank, Matthias Kröner, commented on the partnership:
“Ripple enables us to securely and instantly send money anywhere in the world at no additional cost and through the same customer facing products and relationships we offer today.”
The bank Customers will be able to use the protocol without making a Ripple account. They will engage with Fidor in a similar manner. The bank offers its Fidor Smart current account, a product that combines a traditional bank account with Internet payments and banking services.
In addition, Fidor will reduce costs related with settlement and foreign exchange risk. The move will allow the bank to seamlessly transact with other financial institutions using Ripple’s network.
Ripple is unique for allowing more than just government-backed currencies to be transferred. It is an open, decentralized payments protocol without a centralized authority that enables to make free payments in any currency with no chargebacks. It is holding all global orders within a single blockchain-like order book. All that’s required is someone around the globe to accept payment in that form.
Ripple will be able to benefit from its payment protocol incorporation into Fidor bank. It took a different approach to bringing the advantages of bitcoin-like technology to payment and remittance networks and exchanges, creating a community of investors, developers and financial institutions that intend to create a currency-agnostic payment mechanism rather than an alternative currency.