A group of banks across the globe have teamed up to set up the first interbank group for global payments based on blockchain technology.

Bank of America Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac, and Royal Bank of Canada are the founding members of the group, named the Global Payments Steering Group (GPSG). CIBC is also expected to join the group as a member.

GPSG aims to manage the creation and maintenance of Ripple payment transaction rules, formalised standards for activity using Ripple, and other actions to facilitate the implementation of Ripple payment capabilities, fintech provider Ripple said.

Donald Donahue, former president and CEO of the Depository Trust & Clearing Corporation (DTCC) will chair the newly established interbank group.

“The creation of GPSG is significant because this represents the first time that major banks have formulated policies to govern the transfer of money across borders using blockchain,” Donahue stated.

Ripple said that its collaboration will the banks are aimed at lowering the time and cost of settlement as well as supporting new types of high-volume and low-value global transactions.

Ripple CEO and co-founder Chris Larsen said: “Today, people expect money to move at the speed of the Internet. That’s why we’re working with these top banks to address the need for faster cross-border payments.

“The work of GPSG, a new global interbank network, will give financial institutions and their customers the ability to make new types of payments at mass scale.”