The collaboration aims to facilitate instant and secure GBP and EUR-denominated payouts for Ripple’s payments customers. Clear Junction, as an FCA-authorised e-money institution in the UK, provides operational strengths and security assurances to its partners, holding ISO 27001 certification, the highest global data security standard.
The partnership is seen as a strategic fit, with Clear Junction already supporting Ripple's use cases and possessing strong relationships with many of Ripple's existing clients. Both parties express optimism about the collaboration, viewing it as a step towards augmenting their respective products and services.
Clear Junction representatives highlighted the significance of blockchain technology and cryptocurrencies in the evolution of correspondent banking, expressing enthusiasm for the partnership with Ripple. Ripple Payments, known for its enterprise-grade infrastructure facilitating faster and more efficient cross-border payments, serves hundreds of customers across the globe.
Established in 2016, Clear Junction offers services such as multi-currency payment accounts, e-money accounts, virtual IBANs, and treasury services for regulated financial institutions. Through this partnership, clients can access new markets and technologies while shortening the time typically required to establish banking relationships.
In April 2024 Ripple announced plans to launch a stablecoin pegged 1:1 to the US dollar. The stablecoin will be fully backed by deposits in US dollars, short-term US government treasuries, and similar cash equivalents. Independent accounting firms will audit these reserve assets, and Ripple will release monthly attestations.
Initially, the stablecoin will be accessible on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains, with intentions to extend to additional blockchains and decentralised finance (DeFi) protocols and applications in the future.
Ripple's team has outlined that introducing the stablecoin on both the XRP Ledger and Ethereum will serve as a strategic gateway to explore new opportunities for institutional and DeFi applications across various ecosystems. Utilizing the inherent functionalities of the XRP Ledger, such as a decentralised exchange and automated market maker, aimed at leveraging XRP as the bridge asset, is expected to bolster adoption and drive development, thereby enriching the ecosystem.
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