Blockchain and distributed ledger technologies (DLTs) are often branded as disruptors – upstart technologies that aim to ‘eat the lunch’ of financial incumbents. As with most generalities, however, this idea falls apart upon observation. Startups are not the only entities researching the opportunities technology could unlock and entering the now-burgeoning market for blockchain solutions – established companies are entering the space, too.
For example, London-based Earthport , an Internet payment infrastructure provider founded in 1997 , is already choosing to embrace DLT technology by adding it to existing product lines. The cross-border payments specialist is now using the Ripple protocol as part of a new solution that yields insight into the problems major banks are facing in bringing their tech out of the lab and to the market.
In a new interview, Earthport’s Daniel Marovitz – the firm’s in-house blockchain expert and president of its European division – explains that the firm’s new Distributed Ledger Payments Hub is a result of its belief that the technology could improve on or complement its existing services, and that technology itself is secondary to providing a better service to clients.
"The traditional correspondent rails are just not fit for purpose. No one wants to spend $40 to move $50," Marovitz said. "When we got into DLT, we viewed it as an organic continuance of the same theme. This is a new payments rail we can deliver through the same API."
The company, which already connects banks and payment aggregators, has identified deficiencies with current offerings – for example, that "traditional correspondent banking” is too slow, and that the need to wait three days for funds has caused “customer frustration".
With this in mind, Earthport is venturing to test its market hypothesis, launching its DLT service complete with the kind of brochures you’d expect from a company with […]
