The payments subsidiary of blockchain services firm Ripple has formed a partnership with Swiss bank Amina, granting it access to Ripple’s payment infrastructure.
As detailed in a Ripple Payments announcement released on Friday, this collaboration will enable Amina to “settle transactions more efficiently without depending on traditional payment frameworks, resulting in faster, more cost-effective, and more reliable transactions with enhanced transparency.” This partnership builds on prior efforts, including the bank’s integration of the Ripple USD (RLUSD) stablecoin, which took place in July.
This initiative further strengthens Ripple’s position in Europe, with Amina being regulated by the Swiss Financial Market Supervisory Authority. Additionally, the bank’s Austrian subsidiary possesses a license under the European Union’s Markets in Crypto-Assets Regulation (MiCA), granted by Austria’s Financial Market Authority in October.
Amina’s chief product officer Myles Harrison remarked that “native web3 businesses often encounter challenges when interfacing with legacy banking systems,” noting that stablecoins can alleviate these issues. “This is especially relevant for cross-border stablecoin transactions, which traditional banks have yet to extensively embrace.”
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Banks require crypto services for crypto firms
Harrison explained that the bank’s clients “require payment infrastructure capable of managing both fiat and stablecoin operations simultaneously,” a capability traditional banking networks fall short on. In contrast, Ripple Payments has enabled Amina to deliver these services, which has led to “minimizing cross-border friction and assisting our crypto-native clients in sustaining their competitive advantage.”
Ripple’s managing director for the UK and Europe, Cassie Craddock, stated that the partnership allows Amina to “act as the entry point for digital asset innovators into traditional financial systems.” She emphasized that Ripple Payments serves as a “bridge between fiat and blockchain,” facilitating seamless stablecoin transactions.
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Ripple brings traditional finance on-chain
This marks yet another collaboration where Ripple is infusing blockchain capabilities into traditional financial institutions. Reports from mid-November suggest that the company is investing approximately $4 billion to integrate prime trading, treasury solutions, payments, and custody to compete with traditional financial models.
Ripple’s goals have a global scope. Earlier this month, Ripple Labs obtained approval from Singapore’s central bank to broaden its payment functionalities. This will allow the company to provide regulated token services, end-to-end payments, and growth opportunities across the Asia-Pacific region.
By the end of November, RLUSD also received clearance for institutional use in Abu Dhabi after being recognized as an Accepted Fiat-Referenced Token by the local regulatory authority.
