Clearing House, a well-known Ripple partner company, is working with Wells Fargo on a cross-border payment system. The deal was “specifically designed to support digital commerce,” which could replace SWIFT.
Ripple partners with Wells Fargo
The system was named Real Time Payment Service (RTP). In practice, it facilitates the real-time transfer of digital currency between eligible accounts at Wells Fargo.
A new Wells Fargo online service agreement has been shared on the internet and details how this project can directly challenge SWIFT’s dominance.
According to the Clearinghouse, the RTP Service was specifically designed “for the digital, on-the-go way we live and work today.”
“In particular, unlike rival payment systems, the RTP system includes real-time posting, immediate confirmation and a secure two-way messaging service,” the document highlights.
However, at the moment it appears that the RTP service will be heavily restricted to Wells Fargo. That is, it will not be open to other Ripple partners or who use the company’s solutions.
Additionally, the statement also highlighted that there will, at this early stage, be a payment limit of $5,000, despite the Clearing House stating elsewhere that its system works within a credit transfer limit of $100,000.
Also in the document, Wells Fargo reserves the right to discontinue, modify or suspend access to the RTP service at any time. At the same time, he said that he will be able to add eligible accounts to the RTP Service, indicating that he can include other partners in the project.
“Ultimately, however, this is further evidence that digital currencies are becoming increasingly adopted by major financial institutions,” stated Tobias Lewis.
Lewis also stressed that leading banks are recognizing the need to improve the flow of commerce in the digital economy with bespoke systems designed for this purpose.