Ripple is participating in distributed ledger-based trade finance project in Singapore that involved major financial institutions in Asia-Pacific.
The project is leveraging Ripple’s distributed ledger as the basis for a platform that tracks invoices that back loans to suppliers.
The platform, built in Singapore, enables issuance of invoices into Ripple’s ledger to ensure client and commercial data confidentiality, to reduce the risk of duplicate financing by multiple banks, and to permit banks to access a single source of information on the status of loan invoices.
Chris Larsen, Ripple CEO and co-founder, noted:
Ripple’s core technology is a powerful infrastructure solution that dramatically reduces risk and costs associated with asset settlement. We’re thrilled to see global industry leaders produce solutions for important new use cases of distributed financial technology.
The trade finance use case is an example of applications for distributed financial technology to solve diverse financial problems.
Ripple reports that key participants in the global financial system, including banks, government agencies and large tech enterprises, are exploring and adopting more use cases for distributed financial technology. This custom solution was the result of a collaborative effort by many industry players with a wealth of experience in trade finance. It is also on the forefront of the trending use of distributed financial technologies in the Asia-Pacific region.
Ripple’s ledger tracks the ownership of its proprietary currency, XRP, and other digitized assets, including fiat currencies, titles, financial instruments and invoices
Microsoft revealed in December that its cloud platform Azure is operating a Ripple validation node.