Mitsubishi UFJ Financial Group (MUFG) and Mitsubishi Corporation have announced intention to use Ripple (XRP) distributed ledger technology to demonstrate international remittance. The cross-border settlement according to Mitsubishi reduces the cost and time of transaction settlement. In the remittance test, it was aired that UK’s Standard Chartered will also be a major participant.
“We aim for practical use within a few years,” the statement indicated.
It was indicated in the statement that Singaporean dollars will be remitted from Thailand to Singapore, adding that Mitsubishi Corporation subsidiary will transact fund from an account held in the local Ayutaya Bank under MUFG, to an account established by Mitsubishi Corporation Affiliate at Singapore’s base in Standard Chartered.
“In the current international remittance, we use a network of International Banking Communication Association (SWIFT) where financial institutions of each country participate. In many cases, it often goes through multiple banks, it takes a lot of fee and generally takes several days to remit.”
Talking about Ripple (XRP) wonderful performance in cross border remittance, the statement infers that the distributed ledger technology which was used for demonstration experiments was developed by U.S. based Ripple technology, and does not give room for data tampering that results in fraud.
Adding to the statement, the protocol is cheaper and very fast when compared to other remittance protocols deployed by conventional banks.
In 2017, Ripple announced that Mitsubishi UFJ as part of the 10 customers deploying Ripple technology.
“Ripple is proud to announce the addition of 10 new customers to our growing global network. These financial institutions include MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, innovative smaller banks, and payment service providers (PSPs).”
Hirofumi Aihara, General Manager, Bank of Tokyo-Mitsubishi UFJ, a member of MUFG who spoke then said, “We are very pleased to be working with Ripple (XRP) to provide new types of payments services to change our customers’ experience using the power of the blockchain technology. To demonstrate our commitment to the technology, we are joining the Japan Bank Consortium to collaborate with other Japanese banks move to commercial use of Ripple’s global network. I do believe we can bring our experience from the Japan Bank Consortium to the Global Payments Steering Group.”
Many a number of firms are depending solely on Ripple. Recently, the partnership between Ripple and Santander Bank generated an active cross-border settlement app, dubbed One Pay FX. The app, is special for the fact that it settles payment in a jiffy if within Europe and takes one or two days for settlement outside the continent.
What People Are Saying About Ripple.
Different people have been weighing in on Ripple’s reliable use cases, especially on its tools like xCurrent, xRapid, and xVia.
Mr. V Srinivasan, Deputy Managing Director, Axis Bank, said, “We have commenced work with Ripple and are in active discussions with other Banks on the network to collaborate and test various use-cases across retail and corporate remittances.”
Conclusion: Beyond the recent announcement, Ripple (XRP) is becoming outstanding in the remittance world with its enormous use cases.