Ripple Partners with Eastnets for Global Financial Access – AInvest

Strategic Partnership Report: Ripple and Eastnets Collaboration for Global Sustainable Development

Executive Summary

A strategic partnership has been established between Ripple, a leader in distributed ledger technology (DLT), and Eastnets, a global provider of compliance and payment solutions. This report analyzes the collaboration’s significant implications for advancing the United Nations Sustainable Development Goals (SDGs) by integrating innovative financial technology with established global financial infrastructure. The partnership provides Ripple with direct access to Eastnets’ network of over 800 financial institutions, including 22 central banks, positioning its technology to enhance the efficiency, security, and inclusivity of the global financial system.

Partnership Scope and Technological Integration

The collaboration centers on the integration of Ripple’s DLT into Eastnets’ “PaymentSafe” platform, a unified hub for managing domestic and international payments. This integration is critical for achieving key sustainable development objectives.

• Network Access: Ripple gains access to a network that includes 15 of the world’s top 50 banks and over 270 institutions relying on Eastnets for SWIFT connectivity.
• Technological Synergy: Ripple’s DLT will operate within a platform that supports multiple messaging formats, including the emerging global standard ISO 20022, and offers real-time integration with the core systems of major financial institutions.
• Compliance and Security: Eastnets provides essential services in compliance and security, ensuring that the integration of new technology aligns with robust regulatory frameworks.

Direct Contributions to Sustainable Development Goals (SDGs)

This partnership directly supports and accelerates progress on several key SDGs through the modernization of financial infrastructure.

1. SDG 9: Industry, Innovation, and Infrastructure

   The collaboration is a prime example of fostering innovation to build resilient infrastructure.

   • It promotes the technological upgrading of the financial sector by introducing DLT to established systems.
   • It supports the global migration to ISO 20022, a critical step in creating a more modern, data-rich, and efficient payment infrastructure.
   • By enhancing cross-border payment systems, it provides a foundation for sustainable industrialization and global commerce.

2. SDG 10: Reduced Inequalities

   By improving the efficiency of cross-border transactions, the partnership can help reduce inequalities within and among countries.

   • It has the potential to lower the cost of remittances, a key financial lifeline for millions in developing nations, directly addressing SDG target 10.c.
   • It improves financial inclusion by enabling faster, cheaper, and more accessible payment services for individuals and small to medium-sized enterprises (SMEs) in underserved markets.

3. SDG 16: Peace, Justice, and Strong Institutions

   The focus on compliance and security strengthens the integrity of global financial institutions.

   • Eastnets’ advanced compliance solutions help institutions combat illicit financial flows, contributing to more effective, accountable, and transparent systems (SDG 16.6).
   • The integration of DLT offers enhanced transparency and traceability, further bolstering the security and trustworthiness of financial networks.

4. SDG 17: Partnerships for the Goals

   This initiative exemplifies a multi-stakeholder partnership leveraging technology and finance for sustainable development.

   • It combines Ripple’s technological innovation with Eastnets’ established institutional relationships and trust.
   • Through Eastnets’ role as a strategic contributor to the World Economic Forum and a founding member of the International Association for Trusted Blockchain Applications (INATBA), the partnership can influence global policy and standard-setting to align with sustainable development objectives.

Conclusion: A Framework for Sustainable Financial Modernization

The Ripple-Eastnets partnership represents more than a commercial alliance; it is a strategic initiative poised to reshape global financial infrastructure. By embedding advanced DLT within the core of the existing financial system, the collaboration directly contributes to building a more efficient, inclusive, and secure global economy. Its alignment with SDGs 9, 10, 16, and 17 underscores its potential to drive meaningful progress toward a sustainable and equitable future, making it a significant development in the evolution of digital finance.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the partnership between Ripple and Eastnets connects to several Sustainable Development Goals (SDGs) by focusing on the enhancement of global financial infrastructure, technological innovation, and strategic partnerships.

• SDG 8: Decent Work and Economic Growth – By improving the efficiency and reach of financial systems, the partnership can facilitate economic activities and growth.
• SDG 9: Industry, Innovation, and Infrastructure – The core of the article discusses technological innovation (DLT, blockchain) and the development of resilient financial infrastructure for cross-border transactions.
• SDG 10: Reduced Inequalities – Improving cross-border payment systems can lead to lower transaction costs, which is particularly relevant for reducing the cost of remittances and enhancing financial inclusion.
• SDG 17: Partnerships for the Goals – The article is fundamentally about a strategic partnership between private sector entities to leverage technology and expertise, and it also highlights engagement in broader multi-stakeholder platforms like the World Economic Forum.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 8: Decent Work and Economic Growth

• Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.”
  • Explanation: The partnership provides Ripple’s technology to Eastnets’ network of over 800 institutions, including 22 central banks and 15 of the world’s top 50 banks. This strengthens the technological capacity of these institutions to manage payments and compliance, which is a foundational step toward expanding and improving financial services.

SDG 9: Industry, Innovation, and Infrastructure

• Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being…”
  • Explanation: The collaboration aims to create a more resilient and efficient infrastructure for global finance. The article highlights the integration of Ripple’s distributed ledger technology (DLT) into Eastnets’ “PaymentSafe” platform, which serves as a unified hub for managing domestic and international payments, thereby improving transborder infrastructure.

SDG 10: Reduced Inequalities

• Target 10.c: “By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.”
  • Explanation: While not explicitly mentioning remittances, the article states that Ripple’s long-standing goal is to become a “foundational infrastructure for cross-border payments.” Ripple’s DLT is designed to make these payments faster and cheaper, which directly contributes to the goal of reducing transaction costs.

SDG 17: Partnerships for the Goals

• Target 17.16: “Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources…”
  • Explanation: The partnership between Ripple (providing DLT technology) and Eastnets (providing access to a network of financial institutions and compliance expertise) is a clear example of a private-sector partnership mobilizing technology and expertise to improve global systems.
• Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…”
  • Explanation: The article notes that Eastnets is a “strategic contributor to the World Economic Forum” and a “founding member of the International Association for Trusted Blockchain Applications (INATBA).” This demonstrates engagement in multi-stakeholder partnerships that aim to influence global policy and standardize new technologies.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 8: Decent Work and Economic Growth

• Implied Indicator for Target 8.10: The number and scale of financial institutions gaining access to advanced technology.
  • Explanation: The article provides specific numbers that serve as indicators of the partnership’s reach: “over 800 institutions,” “15 of the world’s top 50 banks,” and “22 central banks” are supported by Eastnets and will now have access to Ripple’s integrated technology. This indicates an enhancement of institutional capacity.

SDG 9: Industry, Innovation, and Infrastructure

• Implied Indicator for Target 9.1: The deployment and integration of new technologies into existing financial infrastructure.
  • Explanation: The article describes the “integration of Ripple’s distributed ledger technology (DLT) within Eastnets’ ‘PaymentSafe’ platform” and its support for the ISO 20022 messaging standard. The successful implementation of this integration serves as a qualitative indicator of infrastructure improvement.

SDG 10: Reduced Inequalities

• Implied Indicator for Target 10.c: The potential for reduction in cross-border transaction costs.
  • Explanation: The article does not provide a specific metric for cost reduction. However, it implies this outcome by highlighting the partnership’s role in supporting Ripple’s goal of creating a more efficient “foundational infrastructure for cross-border payments,” a key mechanism for achieving lower transaction costs.

SDG 17: Partnerships for the Goals

• Indicator for Targets 17.16 & 17.17: The existence and scope of strategic partnerships.
  • Explanation: The primary indicator is the formal “strategic partnership with Eastnets” itself. Furthermore, Eastnets’ active roles as a “strategic contributor to the World Economic Forum” and a “founding member of the International Association for Trusted Blockchain Applications (INATBA)” are direct indicators of engagement in multi-stakeholder partnerships.

4. Table of SDGs, Targets, and Indicators

Source: ainvest.com