The San Francisco-based blockchain company is steadily becoming a force to be reckoned with. Ripple is taking up new markets in both the Asian and Middle East regions. Besides, another announced about three months ago indicated that Ripple has over 50% of the Indian market under its docket. It is only a matter of time before Ripple becomes a global financial giant.
Team Ripple, was delighted to announced the newest member RippleNet on November 15, the day the crypto market had the worst crash in a period of three months. The 5th largest ASEAN bank, CIMB Group commonly referred to as the Group has signed with Ripple in order to have access to the companies blockchain solutions for cross-border remittances. The bank intends to leverage RippleNet cross-border funds transfer network for all of its markets. The partnership also gives the bank the opportunity to work hand in hand with RippleNet existing customers, who exceed one hundred at the moment.
The Group, besides being one of the largest banks in the region, it is also among the first banking institutions to take advantage of the blockchain technology in realizing international payments. The blockchain technology increase the speed of transactions and the efficiency when making cross-border payments. In addition to that, it greatly lowers the cost of making the transactions.
According to the Ripple team, the World Bank has reported that international fund transfer to Southeast Asia will increase to a colossal $120 billion. Moreover, the Boston Consulting Group (BCG) stated in its report that global international remittances averages at $27 trillion. Besides, it is expected that the global market will see $20 trillion added to the current $27 trillion between 2018 and 2026. Importantly, the ASEAN region will take up at least 39% of the total remittance volume.
CIMB already has its very own blockchain product called SpeedSend. The addition of RippleNet will augment the bank’s payment solution. SpeedSend is currently used to enable instant payments among the customer with features such as send, receive, account crediting as well as instant cash collection. RippleNet integration expands the bank’s horizon into the global market with transfers already started for the U.S., United Kingdom and Hong Kong. The chief executive officer of CIMB Group, Tengku Dato’ Sri Zafrul Aziz expressed his excitement in the partnership stating:
“We are delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths and capabilities. This innovative blockchain solution will revolutionize international cross-border remittances, and is a testament to CIMB’s ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN.”
While cross-border transfers are the primary focus for this collaboration, the bank is ready to harness the power of RipplNet for other solutions within the Group. The CEO of Ripple, Brad Garlinghouse said in regards to the groundbreaking partnership:
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience.” He added “With its focus on innovation, CIMB will continue to be a dominant force in the region for years to come.”
Presently, Ripple price is trading at $0.46, following a slight pullback in the wake of the sudden crash of the cryptocurrency market. The total market capitalization has nosedived to $185 billion from yesterday’s $203 billion. Moreover, Ripple (XRP) is down 9.43 in the last 24 hours.