US-based blockchain startup Ripple’s XRP token will be the first payments settlement mechanism to be added to the newly launched New York-based blockchain consortium R3’s Universal Settler application to facilitate global payments on Corda.
The Corda Settler is an open source Corda-based decentralized application or CorDapp, developed to allow for payment obligations raised on the Corda blockchain platform to be made through any of the world’s payment systems, both traditional and blockchain-based.
A payment obligation arising on Corda can be requested for settlement using XRP by the party. The other party is then notified that settlement in XRP has been requested for payment settlement to the required address before the specified deadline. The obligation is then treated as settled by both parties once the payment has been validated.
The payments will be settled via any parallel system supporting cryptocurrencies or other crypto assets, and any traditional system capable of providing cryptographic proof of settlement. It includes any ‘traditional’ domestic and cross-border payment systems as well as blockchain and cryptocurrency-based systems.
The Corda Settler will verify that the beneficiary’s account was credited with the expected payment, automatically updating the Corda ledger.
The Settler will support domestic deferred net settlement and real-time gross settlement payments in the next phase of development.
XRP, the digital asset for payments, is the first globally recognized cryptocurrency to be supported by the Settler. XRP powers most of the cryptocurrency trading platforms to provide cross-border payments settlement solutions via its blockchain-based payments solutions.
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