Oldest US bank, BNY Mellon, has set up seamless cross-border transactions between Egypt and China
BNY Mellon, the world’s largest custodial bank has, as of yesterday, launched a quick and low-cost payment corridor between Egypt and China, according to a recent press release.
Launching fast payments to China
BNY Mellon has pulled off a first ever payment transaction from Egypt to China, partnering with QNB Al Ahli Egypt, the bank that sent the funds, and Shanghai Pudong Development Bank in China that received them.
The transaction took less than three hours, while previously it required two days to send money between these countries.
Making small transnational payments has become challenging in the past two years after the pandemic kicked off in 2020. Digital transactions and purchases have been rising in popularity since then.
BNY Mellon became the first bank that began using SWIFT Go last year. Top executive Isabel Schmidt from BNY Melon stated that thanks to using SWIFT Go, transactions will become faster, fees will be easier to predict and, overall, the security of payments will improve.
On Oct. 11, it officially entered the crypto custody business.
Ripple and BNY Mellon
Ripple has become a rival to SWIFT, offering even faster transactions than SWIFT. If regular SWIFT transfers take several days, and those via SWIFT Go require several hours, funds transfers made by Ripple using XRP take minutes and do not require prefunding for the destination accounts.
Over the past few years, Ripple Labs has partnered with more than 300 financial institutions, many of which are major banks in various countries and regions around the world, including Spain, Japan and Latin America.
In 2016, BNY Mellon mentioned Ripple in its analysis report, writing that Ripple had taken a major stride in providing a standard to enable payments across payment networks.
Ripple Proof of Concept With BNY Mellon 2016
Full PDF https://t.co/oOhEdlQMg4 pic.twitter.com/a0SR1FoGgC
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 11, 2021