Executive Summary for Financial Institutions Ripple: Internet protocol for interbank payments January 2015 - Version 1.2
Contents
2 Introduction
3 What is Ripple?
4 Who can u Ripple?
5 What are the u cas?
6 How does Ripple work?
巴西龟可以吃吗9 Why u Ripple?
10 Integrating Ripple
11 About
ADVANTAGES OF THE RIPPLE PROTOCOL
Typical payment Payment via Ripple Rerves Provided by bank Provided by 3rd party
Compliance costs Limited visibility = high costs Full visibility = lower costs Reconciliation Manual Automatic
Speed (cross-border)2+ days to ttle 5 conds to ttle
Speed (domestic) Up to 2 days to ttle 5 conds to ttle
Risk Multiple failure points Straight-through processing FX One FX provider Competitive marketplace
Introduction
Ripple is the first open-standard, Internet Protocol (IP)-bad technology for banks to clear and ttle transactions in real-time via a distributed network. Banks can u Ripple to make faster payments in more currencies to more markets - all with lower risks and costs than is possible today.
There is a clear opportunity to improve the infrastructure for interbank payments Banks largely rely on intermediaries (clearinghous, correspondents) to ttle payments. As a result, banks incur mat
erial costs and risks that can be prohibitively expensive - especially for cross-border and real-time payments. One solution for addressing this structural problem is Ripple.
婚礼上父亲讲话稿Ripple is basic infrastructure that optimizes the payment process
Ripple is a neutral (i.e. non-government, non-corporate public good) Internet-bad protocol for connecting banks and payment systems. Banks can u Ripple as a common ledger to clear and ttle transactions in real-time at the lowest-possible cost. Ripple structurally alters the payment process by enabling:
•Bilateral ttlement: Eliminates intermediaries, midpoint failure, delays, lifting fees •Real-time funding: Minimizes exchange spreads, credit risk, collateral costs
...and conquently enables new capabilities and commercial opportunities
Banks can u Ripple to provide their retail and corporate customers with new and enhanced domestic and cross-border payment rvices. The include: real-time payments, comprehensive transaction traceability and reporting, and additional reconciliation information. The capabilities will be critical as the global demand for great payment speeds, global coverage, and transaction comple
xity continues to increa. Ripple is for members, operators, and regulators of payment systems
Ripple is designed to enhance and connect legacy systems and to enable the creation of new systems - all while minimizing critical costs and risks:
五水共治宣传标语•Increas transaction speed and volume with lower credit risk
•Increas network connectivity with lower liquidity costs
•Enables more complex transactions with higher visibility and traceability
What is Ripple?
Ripple is basic infrastructure technology for interbank transactions - a neutral utility for financial institutions and systems.
重度贫血的危害
Basic infrastructure for payment systems – Ripple itlf is not a payment system Ripple alone is modern infrastructure technology that provides (1) real-time and more efficient payment capabilities to existing payment networks, and (2) connectivity between payment networks. Ripple provides only
the ttlement or ledgering component of a payment system. Jurisdiction or network specific rules, governance, standards, and other critical functions are intended to be provided by existing systems and operators.
Ledgering and funds-exchange technology for clearing and ttlement The Ripple protocol enables two critical functions:
1. A common ledger to connect banks and payment networks: To clear transactions,
Ripple provides continuous (24/7/365) connectivity between banks for real-time (approximately every 5 conds) clearing, netting and monitoring - all without a central counterparty.
2. A real-time funds-exchange to ttle transactions: To ttle same-currency
transactions, Ripple transfers funds bilaterally; for cross-currency transactions, Ripple sources funds at the best exchange rate from a competitive marketplace of liquidity providers.
Neutral transaction protocol for global connectivity
Ripple is a neutral, decentralized protocol - it is not owned or controlled by a government or corporat
e entity. Banks can u Ripple as an open standard - like other Internet protocols (e.g. SMTP for email) - to facilitate connectivity and interoperability. Rather than rely on a central counterparty, Ripple us Internet-bad architecture to distribute operation of the protocol across all participating banks. This internet-like design maximizes operational redundancy, thereby minimizing risk of systemic downtime and the concentration of control within any one party.
Applications
睡前短故事Banks
Risk management
Messaging standards
Settlement infrastructure
绿色军营
Rules Ripple: The Foundational Layer of a Payments System
孕妇能吃饼干吗Who can u Ripple?
Ripple is designed to be ud directly by interbank payment network members and operators and by liquidity providers. This is similar to how payment infrastructure is ud today.
Network members: Banks and financial rvice business
Banks and non-bank financial rvice business can u Ripple to provide their customers with new payment capabilities and with existing capabilities at a lower cost. The capabilities may be critical to responding to trends driven by commercial pressures (e.g. increasing market demand for real-time payments; global coverage) and regulatory ones (e.g. stricter liquidity requirements; consumer disclosures). Network operators: Payment networks, clearinghous
Interbank payment network operators can u Ripple as basic infrastructure to provide their members with critical capabilities at lower costs and with reduced systemic risks: • Domestic: 24/7/365, real-time, bilateral clearing and ttlement, thereby lowering costs
and risks of high-volume and high-value payments.
• Cross-border: In addition to above, provide cost-efficient FX and liquidity management
capabilities, thereby lowering costs of global reach and real-time payments. Liquidity providers: Cent
中级经济师真题ral banks, banks, non-bank market makers
Liquidity providers can u Ripple to fund ttlement for Ripple transactions:
• Same-currency: Central banks can enable commercial banks to exchange rerves in
real-time on a bilateral basis 24/7/365.
• Cross-currency: Banks and non-bank market makers can u Ripple to access
additional payment volume and new markets (retail, commercial, and institutional payment flows) by providing good funds for ttlement in exchange for FX spreads.
Central Bank & Regulators
Member
Member Network
Member
Member Network
Liquidity provider
