On Thursday, a spokesperson for Cross River Bank told Bitcoin.com News that it is teaming up with Ripple to make it easier for businesses to send money using Ripple’s dollar-backed stablecoin, RLUSD, without having to build or manage their own blockchain technology.
Key Takeaways
- Cross River Bank is bringing Ripple’s RLUSD stablecoin and XRP Ledger directly into its banking system, giving businesses a simpler way to move money without managing blockchain technology.
- Through a single connection, fintech companies can handle traditional bank transfers, ACH payments, wire transfers, and RLUSD transactions, with around-the-clock access to international payments.
- The partnership brings blockchain payments closer to everyday banking, although Cross River says the new RLUSD services are currently available in only a limited number of U.S. states.
The bank is adding the stablecoin RLUSD directly to its existing banking system, allowing financial technology companies, known as fintechs, to move money through traditional banking networks or the XRP Ledger using a single connection.
Bridging Traditional Banking and Blockchain Payments
Cross River Bank has become an important link between cryptocurrency companies and the traditional finance (TradFi) system. While many conventional banks have been reluctant to work with crypto businesses because of regulatory uncertainty and compliance concerns, Cross River developed technology that allows digital asset firms to access established banking services.
For instance, through its Banking-as-a-Service (BaaS) model, companies such as Coinbase and Circle have been able to connect with payment networks that handle deposits, withdrawals, and money transfers. Adam Goller, Cross River’s head of fintech banking, said the partnership will allow customers to move between U.S. dollars and RLUSD, make international payments, and manage funds 24 hours a day.
“Businesses shouldn’t have to rely on several different providers to move money across the globe. Our partnership with Ripple eliminates that complexity and makes payments simpler,” remarked Goller, in a statement.
Instead of working with several payment providers, companies can access bank transfers, automated clearing house (ACH) payments, wire transfers, and RLUSD transactions through one system.
Limited State Availability as Ripple Expands Its Banking Reach
There is one important limitation. Cross River says these services are currently available only in a limited number of U.S. states. Still, the partnership puts Ripple’s RLUSD directly inside a regulated U.S. bank’s existing technology. Businesses using Cross River can access blockchain payments alongside TradFi services without needing to operate their own blockchain systems.
“Cross River is at the forefront of putting that into practice by bringing RLUSD and the XRP Ledger’s fast, low-cost settlement into its regulated banking platform,” explained Markus Infanger, senior vice president of RippleX at Ripple, in a statement.