Siam Commercial Bank and PTT Exploration and Production Public Company have announced the success of a live pilot payment system on the blockchain. Siam Commercial Bank and PTT Exploration and Production Public Company have been in collaboration since mid-2018 on a research and development effort to adopt blockchain technology for cross-border business to business payments. Earlier this year the project was able to make test payments on the blockchain (we will get into details down below) speeding up payment times from one to two days to just under one minute. This is a massive speed increase and is only possible with blockchain technology. The question is who’s technology are they using?
Mr. Wasin Saiyawan who is Siam Commercial Bank SEVP & Chief Wholesale Banking Officer stated that:
“The project marks a major success in bringing a new international payment service standard for corporate customers using Blockchain technology. The achievement reflects SCB’s commitment to harness the use of new technologies and innovations to transform business in the digital era. We would like to convey our appreciation to PTTEX for choosing SCB as a partner for this collaboration. We are now ready to take the success of this service forward to set a new norm for the industry, enabling our customers to enjoy efficient and speedy service. The service will be implemented in all CLMV and southeast Asian countries by this year, which will serve as a major milestone in the development of cross-border payment services.”
Mr. Sumrid Sumneing – PTTEC Finance and Accounting Group Executive Vice President said that:
“PTTEX will work closely with SCB to continue using Blockchain technology for other financial transactions to optimize its digital competitiveness effectively and quickly.”
The collaboration between SCB and PPTEX sets a new standard for real-time cross-border payments which is a major step in the evolution of a new financial industry.
So the big question is – how is this being done? With times just under 1 minute and the strong relationship between SCB and Ripple, we can only assume that RippleNet is being used.
September 28th, 2018 Ripple Insights posted an article titled: Siam Commercial Bank Pioneers RippleNet’s “Multi-hop” Feature
In this article Ripple highlighted that SCB would be the first financial institutions on RippleNet to pioneer a key feature called “multi-hop”, which would allow SCB to settle frictionless payments on behalf of other financial institutions on the network. Using multi-hop, SCB will be able to receive and forward on a payment without a bilateral relationship between the originator and beneficiary institutions.
July 4th, 2018 a deal was signed between SCB and PTTEP: Press Release here
“Siam Commercial Bank” and “PTTEP” sign cooperation agreement to … develop international money transfer system. Cross-border payment on the first blockchain technology in the B2B format …. (Google Translator)
— Arndt*GG (@arndt_gg) July 4, 2018
PTTEP Chief Executive Officer said that PTTEP has partnered with Siam Commercial Bank to implement Ripple’s Blockchain technology in international money transfer transactions. This is a beginning of cooperation with financial institutions to increase the efficiency of PTTEP’s cross-border financial transactions in less time.