Swedish private bank SEB has signed an agreement with American fintech company Ripple to use their blockchain technology solution as a basis for payment transactions.
The new partnership will enable SEB to pilot the Ripple-developed blockchain and the first step will enable clients to make real-time transfers between SEB accounts in Stockholm and New York.
SEB head of transaction services Paula da Silva said: “This is a way to explore the potential of new technologies and an example of how we, by working with innovative technology companies, can be even more relevant to our customers.
According to SEB, it has verified that the solution is compatible with its infrastructure and work is now underway to build a complete payment solution
The first customer transactions are planned for next year, and will offer customers real-time transfers with later cut-off times than today.
“In the next step, we plan to expand the solution to include all geographies and time zones in which we operate," Silva added.
Since last year, SEB is part of the Distributed Ledger Group, where some 50 international banks have joined forces in a partnership to develop common standards for the distributed ledger technology.
In August SEB, through its venture capital unit, also made an investment in Coinfiy, a Danish fintech company, which develops solutions for blockchain payments.