SBI Ripple Asia, a joint venture between SBI Holdings, Ripple, Tranglo, and SBI Remit, has announced the launch of an international money transfer service utilizing the crypto asset XRP. The service will be initially introduced to bank accounts in the Philippines, Vietnam, and Indonesia, with plans to expand to more countries.
This collaboration builds on the successful partnership between SBI Remit and Ripple, which dates back to 2017 when SBI Remit first started using Ripple’s technologies for cross-border transactions.
In 2021, they introduced a unique Ripple-powered crypto solution for money transfers between Japan and the Philippines. Now, the scope of this collaboration is expanding to cater to countries with significant remittance corridors.
One of the key elements of this initiative is the partnership with Tranglo, a leading cross-border payments provider. XRP will serve as an intermediary currency, offering speed, cost-efficiency, and enhanced scalability for global transactions.
By leveraging XRP as a bridge currency, SBI Remit aims to reduce the cost of pre-funding destination accounts, making the service more efficient.
The go-live scheme works like this: SBI Remit sends the customer’s payment request, while SBI VC Trade promptly responds with XRP. Tranglo then processes the customer’s payout request and facilitates the transfer to the beneficiary’s bank account in the receiving country.
This decision is anticipated to have a significant impact on the remittance market, especially in countries like the Philippines, Vietnam, and Indonesia. These countries receive a considerable portion of the remittances deposited into bank accounts. Introducing this move will offer users an expedited, cost-efficient, and scalable solution for international money transfers.
Ripple’s Vision for Crypto Adoption
In addition to their collaboration, the company has recently expressed its commitment to simplifying the adoption of cryptocurrencies for businesses. The company recognizes the importance of essential components for running a crypto enterprise smoothly, including managing liquidity at scale, custody services, payments facilitation, and compliance adherence.
Ripple actively works towards providing these essential capabilities to enterprises seeking to incorporate cryptocurrency into their operations. However, initiatives like the one started by SBI Ripple Asia are opening the way for more effective and accessible international money transfers as the world of blockchain and cryptocurrency continues to develop, and the company intends to make it easier for companies worldwide to use cryptocurrencies.
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