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Stellar Blockchain to host EU-Thailand remittance corridor

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Stellar has seen major breakthroughs of late as rivalry with the blockchain firm Ripple continued to escalate. In the latest development, a new cross-border remittance corridor has been opened between the 27 European Union [EU] countries and Thailand on the Stellar blockchain.

According to the official press release, Velo Labs, the company building a global settlement network, has teamed up with TEMPO Payments, the EU anchor for Stellar blockchain payments. The two entities aim to leverage Bitazza which happens to be a Thai crypto trading platform to facilitate the transactions. TEMPO Payments and Bitazza are both licensed financial institutions and have expanded their footing across ASEAN and EU markets, raking in nearly $17 billion and almost 600 million customers.

Stellar blockchain will be hosting the new corridor and leverage Velo tokens and Velo digital credits for the on-chain transactions. All three partner companies aim to perform a faster and cheaper money transfer option between Europe and Thailand by relying on their respective networks and eliminate the inefficiencies in these areas.

Elucidating more on the offering, Mike Kennedy, CEO of Velo Labs stated,

“What we’ve launched today is a validation of our core mission: building a global, decentralized, and interoperable network that will allow businesses and individuals alike to securely and instantly transfer value across the globe. Velo Labs wants to make cross-border transactions faster, cheaper, and more reliable for everyone; this first step starts us down the path of that reality.”

Stellar flying high

The latest news comes after reports of Stellar negotiating to purchase MoneyGram made headlines. The latter happens to be a popular global remittance app formerly partnered with Ripple. The two firms previously enabled large-scale remittances among emigrant communities.

However, things went south when tensions between Ripple and SEC escalated. Several platforms suspended XRP operations. MoneyGram also terminated its partnership agreement with the beleaguered blockchain company. Many in the community viewed Stellar’s reports to buy MoneyGram as an inflammatory move at a critical point in XRP’s timeline.

Korean Firm Believes Ripple is the Key to Unlocking a Whole New World for Migrants

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South Korea has emerged as one of the most exciting countries in the world of cryptocurrencies, with multiple updates and developments happening within its borders. Cryptocurrency organizations in the country have also taken on the responsibility of improving the social standards and financial structure of their citizens.

Sentbe was one such cryptocurrency company that planned to transform the financial landscape by partnering with SBI Ripple Asia. The project will work in tandem with Ripple and SBI Holdings to improve processes related to traditional banks and services.

The Brad Garlinghouse led Ripple has been a stalwart in the cross border transaction department with multiple partnerships across the board. The company has partnered with several startups across the world to provide a better infrastructure to payment corridors untapped by the financial market.

According to Sentbe, traditional financial methods have remained ineffective since its inception. J Young Lee, the co-founder and Chief Strategy Officer of Sentbe stated that there was a large group of people who were left in the lurch due to outdated banking methods. He said:

“Cross-border payments are typically expensive and time-consuming.but with RippleNet’s help we’ve made them faster, cheaper, more convenient. Now we want every hard-working migrant in Korea to know about and have the ability to access this better way of sending money home to their families.We are interested in expanding to any area where RippleNet can take us as the ease of integration makes any new corridor instantly valuable”

RippleNet has enabled organizations with their cross border transaction needs since 2018. Ripple‘s latest partnership with MoneyTap was another example of this growing demand for faster transfers in payment borders. For Sentbe, improving remittances meant overcoming four major challenges faced by migrant workers. These included factors like transparency, speed, convenience and cost of individual transactions.

Lee stated that many times, low-income workers did not know about hidden costs and transaction charges. On top of this, remittances were slow and usually took about 2-3 days to settle. Families of these workers usually find it very difficult to receive payments due to outages and a lack of transparency, stated Lee. The lower financial strata have usually flocked to digital assets in times of need, a test case being Venezuela.

Sentbe Archives has shown that they first planned to use Ripple’s XRP back in 2017, but that it was stopped because of Korea’s regulatory authority. The initial plan was to use XRP as a liquidity settlement solution. After that, the company turned to use Ripple‘s technology, such as the RippleNet, for its speed and convenience. This straightforward approach resulted in users saving more than $25 million in transaction fees.

With the RippleNet partnership, Sentbe becomes part of a wide network of banks and financial institutions. At the moment, Korean customers have the option of sending money to 25 payment corridors across the regions. Sources close to the company said that there were also plans to set up partnerships in the Latin American corridor. The need of the hour was financial inclusion and migrants also needed to be a part of this, remarked Lee.