BANKS NEED HYBRID APPROACH TO BLOCKCHAIN TECHNOLOGY: RIPPLES MARCUS TREACHER

The promise of blockchain technology has captivated industries worldwide, touted as a revolutionary solution for everything from supply chain management to secure voting systems. In July the same year, Shivdeep Dhaliwal published an article from his email communications with Marcus Treacher, Ripples Global Head of Strategic Accounts. Banks Need Hybrid Approach to Blockchain Technology : Ripple s Marcus TreacherHowever, when it comes to the intricate and highly regulated world of banking, a one-size-fits-all approach simply won't cut it.Marcus Treacher, the Global Head of Strategic Accounts at Ripple, a company deeply involved in cross-border payment solutions, argues that banks need a hybrid approach to blockchain technology to truly unlock its potential.This involves strategically integrating blockchain solutions with existing infrastructure, rather than attempting a complete and disruptive overhaul. The long-awaited tipping point from on-premise museum banking technology to agile, cheap cloud-hosted bank technology is getting closer. 2025 perhaps is the year? 2025 will see new consumer purchase solutions emerge for tourists/travellers that don t require cards or card rails. Technology like Ripple s will be key in achieving this.This hybrid model allows banks to leverage the benefits of blockchain – enhanced security, transparency, and efficiency – while mitigating its limitations, such as concerns around transaction privacy and interoperability. Banks Need Hybrid Approach to Blockchain Technology : Ripple s Marcus Treacher Are Stefan Thomas and Marcus Treacher s predictions of hybrid blockchains a hint that Ripple may be offering a hybrid blockchain solution to their clients in the near future?But what exactly does this hybrid approach entail, and why is it garnering so much attention?The answer lies in the unique challenges and opportunities facing the banking sector in the digital age. Marcus Treacher, who previously worked at both Ripple and HSBC, provided insights into the future of this technology: Marcus Treacher stated: A single blockchain is not viable, the future is in different currency blocks with Ripple an interconnection. Also Read: Global Financial Authority IIF Endorses XRP as Swift Alternative for PaymentsThis article delves into Treacher's insights and explores the compelling reasons why a hybrid blockchain strategy is becoming increasingly crucial for banks looking to thrive in the future of finance.

Understanding the Limitations of Pure Blockchain in Banking

While the decentralized and immutable nature of blockchain offers undeniable advantages, certain aspects make it challenging to implement directly within traditional banking systems. Are Stefan Thomas and Marcus Treacher s predictions of hybrid blockchains a hint that Ripple may offering a hybrid blockchain solution to their clients in the near future?Concerns about data privacy are paramount. Others claim to have abandoned the old model and developed completely new systems based on distributed ledger technology alone, Ripple being the largest and best-established. (None actually uses a true Bitcoin-style blockchain and so all rely more or less on existing payment systems, whether ACH or correspondent banking.)Public blockchains, by design, are transparent and accessible to anyone. Blockchain technology is gradually being acknowledged as the be all and end all solution for most if not all of the world s problems. However, with banking, blockchain falls short onThis level of openness is incompatible with the stringent privacy regulations governing financial institutions.This is where the need for privacy becomes very important. Ripple, which touts itself as the Global Settlement Network and has been involved with various banks to move money around the world, has its own ideas about how Blockchain can and can t help the banking sector.Banks handle highly sensitive customer data, and exposing transaction details on a public ledger is simply not an option.

Furthermore, interoperability remains a significant hurdle. Could Ripple's XRP replace Correspondent Banks and Marcus Treacher!Imagine a world where each bank operates on a completely different blockchain network.Seamless cross-border transactions would be virtually impossible. Banks Need a Hybrid Approach to Blockchain Technology Marcus Treacher Amongst other things, Hybrid Blockchain does ensure trusted cross-border payments for trade and financing.Existing systems, despite their shortcomings, are built upon established standards and protocols, ensuring a degree of interoperability that pure blockchain solutions currently lack.The Canadian Central bank and Bank of England highlight challenges in their assessment of blockchain technology for RTGS service.

• Privacy Concerns: Public blockchains lack the privacy required for sensitive financial data.
• Interoperability Issues: Lack of standardized protocols hinders seamless cross-border transactions between different blockchain networks.
• Scalability Limitations: Some blockchain networks struggle to handle the high transaction volumes typical of banking operations.
• Regulatory Uncertainty: The evolving regulatory landscape surrounding blockchain and cryptocurrencies creates uncertainty for banks.

The Rise of Hybrid Blockchain: A Balanced Solution

A hybrid blockchain offers a compelling middle ground, combining the best features of both public and private blockchains. Ripple is reinventing the plumbing layer of banking, it s a way of re-intermediating banks services to bring them into the 21st century, said Treacher. Skinner echoed the need to embrace blockchain technology, noting that many governments worry about cryptocurrency, fearing that it escapes regulation, however, when implemented correctly itIt allows banks to retain control over their data and maintain compliance with regulatory requirements, while still benefiting from the transparency, security, and efficiency of blockchain technology.Marcus Treacher, with his extensive experience at Ripple and HSBC, is a strong advocate for this approach.

A hybrid blockchain typically involves a permissioned layer that controls access to sensitive data and a public-facing layer for verifying transaction integrity.This separation allows banks to maintain privacy while still leveraging the immutable nature of the blockchain to ensure data security and prevent fraud. Treacher brings more than 30 years of experience in transaction banking and payment system technology, including 12 years in global leadership roles at HSBC.Moreover, hybrid blockchains can be designed to interoperate with existing banking systems, minimizing disruption and allowing for a gradual transition to blockchain-based solutions. RTGS.global, the next-gen settlement service delivering real-time cross-border payments and liquidity management, is scaling up quickly in 2025 with very strong market acceptance. In order to react to this rapid growth, RTGS.global is strengthening its executive leadership team by today announcing the appointment of Jarrad Hubble as its permanent Chief Executive Officer, and the appointment ofThis is supported by the usage of API's that allow data exchange between traditional bank systems and blockchain platforms.

Benefits of a Hybrid Blockchain Approach

• Enhanced Privacy: Banks can control access to sensitive data, ensuring compliance with privacy regulations.
• Improved Security: The immutable nature of blockchain enhances data security and prevents fraud.
• Increased Efficiency: Automation and streamlined processes reduce transaction costs and processing times.
• Greater Transparency: Permissioned access allows for increased transparency and auditability.
• Seamless Interoperability: Hybrid blockchains can be designed to integrate with existing banking systems.

Ripple's Role in the Hybrid Blockchain Revolution

Ripple, under the guidance of figures like Marcus Treacher, has positioned itself as a key player in the development and implementation of hybrid blockchain solutions for the banking sector.Their technology, particularly RippleNet, facilitates secure and efficient cross-border payments by leveraging blockchain technology without requiring complete system overhauls. A Google search with the words hybrid blockchain yields roughly 756,000 search results. This isn t many, when compared to public blockchain s 40 million search results orThis approach aligns perfectly with the hybrid blockchain model, allowing banks to enhance their existing infrastructure gradually.

RippleNet bypasses traditional correspondent banking networks, offering faster and more transparent transactions. Cointelegraph asked Marcus Treacher, the Global Head of Strategic Accounts at Ripple how suitable Blockchain technology is for banks. Marcus is of the view that banks need aIt uses liquidity pools and on-demand liquidity to streamline the payment process and reduce costs. Similarly, Kurt Wuckert highlights the feasibility of a hybrid approach for banks, where blockchain solutions are introduced gradually alongside existing systems. APIs can facilitate communication between blockchain platforms and legacy systems, allowing for data exchange and process automation without necessitating a complete system overhaul.This has led to some speculation that Ripple's XRP could potentially replace correspondent banks in the future, as indicated by reports from the Global Financial Authority IIF. Blockchain technology is gaining traction in the fintech industry, with cross-border payments emerging as a key application. Ripple, a provider of digital asset infrastructure for financial institutions, explores Ripple Payments in its latest report, a blockchain-powered solution designed to address the challenges of international transactions.The use of on-demand liquidity is a key component.Ripple's focus on interoperability is also crucial, as it aims to connect different currency blocks, enabling seamless cross-border payments regardless of the underlying blockchain infrastructure.

RTGS.global: A Real-World Example of Hybrid Blockchain in Action

Marcus Treacher's role as the Executive Chairman of RTGS.global further underscores the growing importance of hybrid blockchain solutions in the financial industry.RTGS.global is a cross-border payment settlement start-up that leverages blockchain technology in-cloud and interfaces with national CBDC schemes and structures. After years of speculation, the damning evidence is out: major banks are quietly integrating RippleNet as a SWIFT killer. No more up to 5 business days just real-time settlements that actually work. How it works: Ripple s blockchain bypasses correspondent banking entirely. Liquidity pools? On-demand. Transaction tracking? Immutable. Fees?This allows for immediate cross-border flows, a significant improvement over traditional payment systems.

RTGS.global's rapid growth and strong market acceptance demonstrate the demand for efficient and secure cross-border payment solutions.By combining blockchain technology with existing infrastructure, RTGS.global offers a practical and scalable solution for banks looking to improve their payment processes.

Addressing Concerns about Transaction Privacy and Interoperability

One of the primary reasons why banks are hesitant to adopt blockchain technology is the concern about transaction privacy. Go here to see the full video - Treacher from ClearBank onPublic blockchains, by their very nature, are transparent and accessible to anyone.This is simply not acceptable for banks that handle sensitive customer data.

Hybrid blockchains address this concern by allowing banks to control access to sensitive data.They can use permissioned layers to restrict access to authorized parties only. Bancos Precisam de uma Abordagem h brida da tecnologia Blockchain : Marcus Treacher de Ripple O Ripple, que se proclama como a Rede Global de Assentamento e esteve envolvido com v rios bancos para mover dinheiro ao redor do mundo, tem suas pr prias ideias sobre como o Blockchain pode e n o pode ajudar o setor banc rio.This ensures that customer data remains confidential while still benefiting from the security and efficiency of blockchain technology. Marcus is the Executive Chairman of cross-border payment settlement start-up, RTGS.global. In this role he oversees the build-out of the company s ground-breaking global network for immediate cross-border flows, leveraging blockchain technology in-cloud as well as interfacing to national CBDC schemes and structures.This is addressed by the permissioned layers of hybrid blockchains.

Interoperability is another major challenge. As explored in the blockchain article (page 30), the Canadian central bank has come to the same conclusion and in May, the Bank of England, in its paper, A blueprint for a new RTGS service for the United Kingdom, also said the Bank has decided not to build the renewed RTGS service on Distributed Ledger Technology, in light of itsDifferent blockchain networks often use different protocols and standards, making it difficult to transfer assets or data between them. Welcome! Log into your account. your username. your passwordHybrid blockchains can address this challenge by providing a common platform for different blockchain networks to communicate with each other.

For example, RippleNet connects different currency blocks, allowing banks to send and receive payments seamlessly regardless of the underlying blockchain infrastructure.This interoperability is essential for facilitating cross-border payments and other financial transactions.

The Future of Banking: A Hybrid Blockchain Landscape

The future of banking is likely to be a hybrid landscape, where blockchain technology is integrated with existing infrastructure to create more efficient, secure, and transparent financial systems. Banks using Ripple can enhance cross-border payment security without requiring complete system overhauls, which makes the technology much more appealing to traditional institutions. Marcus Treacher, who previously worked at both Ripple and HSBC, provided insights into the future of this technology:This transition will be gradual, as banks carefully assess the risks and benefits of blockchain technology and develop appropriate strategies for implementation. By David Freuden. Blockchain Advisor A Google search with the words hybrid blockchain yields roughly 756,000 search results. This isn t many, when compared to public blockchain s 40 million search results or private blockchain s 30 million. This article will provide an introduction to hybrid blockchain and highlight why it may become the blockchain of choice for [ hellip;]Marcus Treacher's insights highlight the importance of embracing a hybrid approach that leverages the strengths of both blockchain and traditional systems.

By embracing a hybrid approach, banks can avoid disruptive overhauls and instead gradually integrate blockchain-based solutions into their existing infrastructure.This allows them to leverage the benefits of blockchain technology – enhanced security, transparency, and efficiency – while mitigating its limitations, such as concerns around transaction privacy and interoperability.The long-awaited tipping point from on-premise museum banking technology to agile, cheap cloud-hosted bank technology is getting closer and by 2025 new consumer purchase solutions will emerge for tourists/travellers that don t require cards or card rails.

Key Considerations for Banks Adopting a Hybrid Blockchain Strategy

1. Identify Use Cases: Determine specific areas where blockchain can provide the most value, such as cross-border payments, trade finance, or supply chain finance.
2. Choose the Right Platform: Select a blockchain platform that aligns with the bank's specific needs and requirements.Consider factors such as scalability, security, and interoperability.
3. Develop a Governance Framework: Establish clear rules and procedures for managing the blockchain network, including access control, data management, and dispute resolution.
4. Ensure Regulatory Compliance: Stay up-to-date on the evolving regulatory landscape and ensure that all blockchain-based solutions comply with applicable laws and regulations.
5. Invest in Talent: Build a team of experts with the skills and knowledge necessary to develop, implement, and manage blockchain-based solutions.

Q&A: Common Questions about Hybrid Blockchain in Banking

What are the key benefits of using a hybrid blockchain for cross-border payments?

Hybrid blockchains offer faster, more transparent, and more secure cross-border payments compared to traditional methods. Cointelegraph asked Marcus Treacher, the Global Head of Strategic Accounts at Ripple how suitable Blockchain technology is for banks. Marcus is of the view that banks need a hybrid approach to Blockchain technology. This hybrid approach can solve issues related to transaction privacy and interoperability. In an emailed response MarcusThey reduce transaction costs, eliminate intermediaries, and provide real-time tracking of payments.

How can banks ensure the privacy of sensitive data on a hybrid blockchain?

Banks can use permissioned layers to restrict access to sensitive data to authorized parties only. Marcus Treacher, Senior Vice President of Customer Success at Ripple, discusses challenges in expediting payment processes from a clarity, visibility, and reliability perspective and talks about Ripple s solutions focused on the open internet model.They can also use encryption and other security measures to protect data from unauthorized access.

What are the challenges of implementing a hybrid blockchain in a banking environment?

Some of the challenges include integrating blockchain with existing systems, ensuring regulatory compliance, and building a team of experts with the necessary skills and knowledge.

How can banks measure the ROI of a hybrid blockchain implementation?

Banks can measure the ROI by tracking key metrics such as transaction costs, processing times, and fraud rates. Marcus Treacher is a globally recognised expert in global payments and blockchain technology, with over three decades of leadership experience in the financial services industry. He has held various global leadership roles with renowned financial institutions, including Citigroup and HSBC. Marcus is a blockchain disruptor and has served on the boards of SWIFT, CHAPS, ClearBank RippleNet.They can also assess the impact on customer satisfaction and brand reputation.

What role does Ripple play in the adoption of hybrid blockchain technology in banking?

Ripple provides technology and solutions that facilitate the adoption of hybrid blockchain technology in banking.Their RippleNet platform enables secure and efficient cross-border payments by leveraging blockchain technology without requiring complete system overhauls.

Conclusion: Embracing the Future with a Hybrid Approach

The banking industry stands at a critical juncture.While the potential of blockchain technology is undeniable, a pure blockchain approach presents significant challenges.As Marcus Treacher emphasizes, a hybrid approach to blockchain technology is the most viable path forward for banks seeking to leverage the benefits of this transformative technology while mitigating its risks.This strategic integration of blockchain with existing infrastructure allows for enhanced security, transparency, and efficiency, paving the way for a more innovative and competitive future.As the regulatory landscape evolves and the technology matures, the adoption of hybrid blockchain solutions will likely accelerate, reshaping the financial landscape and ushering in a new era of banking.The key takeaways include the importance of privacy, interoperability, and a gradual integration strategy.Banks must identify specific use cases, choose the right platform, and develop a robust governance framework to ensure successful implementation.By embracing a hybrid approach, banks can position themselves for success in the rapidly evolving world of finance.Start exploring how a hybrid blockchain solution can benefit your organization today.