PNC Treasury Management, a division of PNC Financial Services Group, will use xCurrent, a system developed by Ripple, to speed up the way its US business clients get paid invoices by overseas buyers.
Over the past few years banks have been ramping up their investments in distributed ledgers, which are databases maintained by a network of computers rather than a centralized authority. xCurrent uses bi-directional messaging that can eventually plug banks into distributed ledgers. xCurrent uses an immutable interledger protocol which facilitates the existing payment networks because it offers instant settlement.
Ripple is a startup that builds blockchain technology, the software that first emerged as the system underpinning cryptocurrencies.
Ripple is also familiar with the use of a cryptocurrency called XRP, of which it holds a large share, and which it is meant to be used by financial firms for payments in conjunction with its payment platform, xRapid.
PNC Bank will not be currently using XRP or xRapid to carry out payments, as xRapid was more targeted towards emerging markets than the US.
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