Standard Bank Group works with Hedera Hashgraph

Hedera, a public Hashgraph network and Governing Council, has teamed up with Standard Bank Group, the largest African bank in terms of assets, to tie the loose ends of cross-border trade processes. Cross-border deals are still faced with long settlement times and an asymmetry of relevant information between multiple parties involved in a transaction, which ultimately leads to delays in obtaining approval from intermediaries. In addition, the lack of transparency between the parties involved in cross-border trade processes makes the situation worse. In order to overcome these limitations, the Standard Bank Group, together with the cooperation of the Hedera network, is planning to set up the first Hedera network node in Africa, with which the bottlenecks in cross-border trade processes are to be removed.

Using Hedera’s DLT (Distributed Ledger Technology), authentic information can be seamlessly exchanged between two parties involved in a transaction without the need for intermediaries. In addition, DLT aims to solve the old problems that prevent a transparent payment experience for customers, which leads to enormous cost savings for everyone involved. Transactions on the DLT platforms are only confirmed when all conditions and data fields are met, creating a more transparent environment in which trades can be processed faster and more effectively. On the contrary, Standard Bank Group also has robust potential to leverage DLT and blockchain technology to expedite transactions across the continent. The bank has previously used DLT for various use cases, such as: B. Foreign exchange payments (foreign exchange payments) and settlements between partner banks, customers and other counterparties involved in cross-trades.

Standard Bank Group works with Hedera Hashgraph

This partnership between Standard Bank Group and Hedera aims to bring about the long-awaited digitization in all cross-border businesses across the entire African continent. The focus is on connecting customers to various existing networks within and outside the Standard Bank Group. According to Adrian Vermooten, Chief Innovation Officer of Standard Bank Group, this partnership with the Hedera network is part of the strategic goal that will drive digital transformation both within the company and with partner customers.

Cross-border trades, when done with digital currencies or stable coins on a DLT platform, solve most of the problems like reliance on financial intermediaries, slow processing, higher fees, etc. Hedera network The knot will solve these problems and manifest seamless and transparent cross-border deals. Stable coins are designed to help minimize price volatility by pegging existing currencies to relatively “stable” assets. This offers immediate settlement, transparency and high liquidity for cross-border transactions. Therefore, digitization can have positive effects on cross-border business and this is what this partnership between Standard Bank Group and Hedera Network looks forward to. As part of the partnership, Standard Bank also joins the Hedera Governing Council and operates the first nodes of the Hedera network for two consecutive terms.

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