In a significant development for global payments, Convera, the commercial payments firm previously known as Western Union Business Solutions, has announced a strategic partnership with Ripple. This collaboration aims to integrate blockchain technology into Convera’s existing payment network, which operates across 200 countries and supports transactions in 140 different currencies.
At the heart of this partnership is a novel settlement method termed the “stablecoin sandwich.” This model is designed to enhance the efficiency of cross-border transfers by allowing companies to leverage the speed of blockchain technology, all while eliminating the need for them to directly manage digital assets. Stablecoins, such as Ripple’s RLUSD, will play a crucial role in this process, acting as an intermediary settlement layer that facilitates swift transactions.
Convera CEO Patrick Gauthier emphasized the significance of this partnership, describing it as a vital evolution in response to the increasing demand from businesses for digital currency solutions. By collaborating with Ripple, Convera aims to provide more reliable payment options, especially in regions where the traditional banking infrastructure is either slow or underdeveloped.
This alliance comes on the heels of Ripple’s ongoing expansion into the realm of institutional finance. Just last week, Ripple participated in the Singapore central bank’s BLOOM initiative, which explores programmable cross-border trade settlements using the XRP Ledger in conjunction with RLUSD stablecoins.
According to Aaron Slettehaugh, Senior Vice President at Ripple, the objective is to empower businesses with greater control over their global transactions while dismantling the technical barriers often associated with blockchain technology. He indicated that by merging Convera’s established global payment infrastructure with stablecoin-based settlements, the partnership will provide enterprises with enhanced capabilities in managing their cross-border value transfers with precision and efficiency.
