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Visa Rolls out Blockchain Solu...Visa Inc, one of the world’s top-notched financial services company, has rolled out a new blockchain solution in order to boost cross-border transaction payments globally for financial institutions. The solution will help the banks to carryout payments on behalf of corporate clients at a minimal operational cost.
People familiar with the matter said- “By creating a solution that facilitates direct, bank to bank transactions, we are eliminating friction associated with key industry pain points.”
According to Visa, the network was developed alongside with Bottom-line, FIS and IBM.
The Visa B2B Connect which is created by a group led by Linux Foundation contains a little blockchain technology in it along with the elements of the Hyperledger, the open source distributed ledger technology (DLT).
The new solution might upfront payment fees for financial institutions and transactions will settle down within one to two days.
At present, majority of the cross border transactions are carried out by Swift (Society for Worldwide Interbank Financial Telecommunication), but the California-based company is looking to foray into the market which is believed to be worth $125 trillion. Visa also said that the new distributed ledger software will make direct bank connections fast.
Visa defines the “digital-first approach,” will settle funds across borders on the same day or next day, cutting down the time from 5-7 days.
For now, 30 trade corridors will be facilitated by the new network, and likely to expand to another 90 markets by the year-end.