Japanese remittance service SBI, has become Ripple’s primary partner to launch an xCurrent-backed remittance app named MoneyTap. SBI & Ripple will provide remittance services to Thailand, Vietnam, and other nations using a consortium of partner banks and Ripple’s xCurrent Distributed Ledger technology (DLT).
Creating the internet of value
SBI and Ripple Asia have partnered to form a secretariat for SBI’s Consolidated International and Foreign Exchange Consortium, which is SBI’s network of over 61 partner banks. They will be utilizing Ripple’s xCurrent DLT solution as the underlying technology for their RC Cloud (Ripple Connect) payments network.
RC Cloud will allow the users of SBI’s MoneyTap remittance app, to send money across borders faster and cheaper than Swift. The RC Cloud system will allow member banks to use xCurrent to send money in seconds to any other member bank, which would provide the funds to the recipient via the app. Under this arrangement SBI holds 60% of shares, and Ripple will hold the other 40% of shares.
RC Cloud will not be using the XRP token, and will be offering it’s RC Cloud payment network to other companies instead. The XRP token is managed by Ripple US based offices. RC Cloud will unify domestic and foreign exchange rates to allow efficient transfers across banking boundaries, and jurisdictions.
SBI is one of the largest remittance services in Asia, and handled over 750 Billion Yen in remittance payments last year alone. SBI’s remittance payments are now the number one source of transaction volume on RippleNet.
SBI sees xCurrent as the future, not XRP
SBI’s remittance network already serves Thai and Vietnamese workers in Japan, to send money back home, leveraging its network of partner banks. Of these 61 partner banks, 34 have invested as shareholders in MoneyTap/RC Cloud. When the period of allowing shareholder investment to partner banks is completed, SBI may consider investment from US Ripple, and employ Ripple’s On demand Liquidity. Commenting on the company’s relationship with Ripple, Nobuo Ando, the representative Director at SBI Remit Co, said,
It is our duty to continuously search for superior technological solutions to deliver ever improving remittance services for our customers. With the steady rise of remittance flows, we see Ripple helping us open up new revenue potential for our business and a better overall experience for our customers.
MoneyTap has entered a full-service development stage and is being deployed in conjunction with the development of a cashless society. Banks will benefit from having a cheaper way to send money without utilizing existing infrastructure. Prepaid charge providers will have the interbank fees rolled into one easy to pay fee, and not have to pay for connecting bank development costs.
SBI has made XRP token holders bullish with this announcement, but the RC Cloud system and MoneyTap app, has very little to do with the token. This should be seen as an advance for xCurrent rather than a bullish sign for XRP.
What do you think of SBI’s announcement of using Ripple tech? Let us know in the comments!
Images via Shutterstock, Twitter @xrp_stuart, infographic by Ripple Asia
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