Standard Chartered, National Australia Bank, Mizuho Financial Group, BMO Financial Group, Siam Commercial Bank and Shanghai Huarui Bank will use the Ripple technology for cross-border payments.
The blockchain-based technology is intended to reduce time and cost of settlement, engaging in new types of high-volume, low-value global transactions.
All of the new institutions have already successfully transferred money using Ripple, and all are planning on implementing solutions commercially.
Shanghai Huarui Bank has plans to implement a commercial cross-border payment service for retail customers, allowing them to send money internationally, at a low cost.
Ripple CEO and co-founder Chris Larsen, said: “2016 has proven to be the year where the most forward-thinking financial institutions are actually using blockchain technologies for payments and settlement rather than as an experiment.”
He added: “The continued growth of the Ripple network represents a major endorsement of our open approach to connecting the world’s banks and their customers. Together we are building a modern payments system to enable new economic opportunities and the seamless flow of value around the world.”
Andrew Fang, general manager and head of innovation and research at Shanghai Huarui Bank, said: “We view blockchain as a competitive advantage that allows us to provide differentiated products, serve the on-demand expectations of our existing clients, and grow our customer base.”
Gautam Jain, global head of digitisation and client access for transaction banking at Standard Chartered, commented: “It is crucial that we continue to innovate to make international payments easier and faster, not just for our clients but also for the future of the payments industry.”