Akbank joined Ripple's blockchain network, one of the leading blockchain initiatives in finance, and will use blockchain technology for international money transfer transactions.
Although used widely in areas other than finance, blockchain is a technology which banks are willing to discover first. Expected to trigger a comprehensive transformation in finance industry, the technology attracts great interest in Turkey from banks and the Exchange. A new international cooperation was announced by Akbank today. Akbank joined Ripple's blockchain network, one of the leading blockchain initiatives in finance, will use blockchain technology for international money transfer transactions.
According to the announcement made by Ripple, which was established in 2012 and attracted an investment of $100 million until now. Apart from Akbank, eMUFG, BBVA, SEB, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com are other entities and institutions that joined the Ripple network. The initiative says that the majority of its business partners, including Akbank, are working with Ripple for international payments. This is indeed the area of specialty of Ripple.
It is stated by Akbank that the company operates its cooperation through Akbank AG, an affiliate operating in Germany. It is noted that Akbank AG has started a pilot within the scope of corporate payments and the first transactions are expected to be performed in May. Akbank's new blockchain-based product has advantages such as being faster and having more flexible structure compared to traditional methods. Few of these advantages include the capability of presenting costs and exchange rates in advance, reduced correspondent bank charges, the capability of tracking payments, and 7/24 service delivery.
Tolga Ulutaş, Executive Vice President of Akbank Direct Banking states "As the world finds new ways to use the blockchain technology, we are excited and happy to be the first bank in Turkey to use blockchain technology in international fund transfers," and adds: "We will continue to offer innovative digital products to our customers with blockchain technology, which today offers groundbreaking solutions in many fields, especially the finance industry. We believe that this cutting-edge technology will increase speed and transparency while at the same time lowering costs, and open up a new era in many fields including money transfer in the finance sector."
