While cryptocurrencies have come a long way in the public eye, they are still surrounded by a lot of scepticism by a number of sectors in today’s modern world. One such strenuous relationship is between digital currencies and banks.
In saying that, these two worlds have come a lot closer over the past few years. Blockchain tech and cryptocurrencies have been disrupting the way we look at global finance for the better. The rapidly expanding industry has garnered a lot of attention, whether it is of the regulators or the businesses looking to exploit this disruptive technology to enhance their services.
Many companies have emerged over the past decade, leveraging crypto and blockchain tech, to revolutionize the traditional banking system. Ripple is one of those blockchain companies that has turned out to be a key player in the fintech scene for years now.
Ripple, the company behind the XRP token which is bank-focused and intended to be used as a digital currency for cross-border payments, among other things, has been striving towards remittance of late. Banks and other financial institutions have realized the massive potential of Ripple’s financial products; hence many financial institutions have started to decentralize their processes.
As of late, the company has been solidifying its roots in the Asian crypto market. A major backer of the company, SBI holdings, has revealed its plan to integrate Ripple’s settlement platform MoneyTap with ATMs run by various banks throughout Japan.
MoneyTap to create multibank ATMs
The news was revealed in SBI’s latest financial report where it states that the integration would allow users to seamlessly access their funds irrespective of the banks they are a customer of. According to SBI, the integration would also play its part in reducing operational costs of ATMs. The report stated:
“Currently, each bank has an ATM with its own bank app, but with a common web app, the same ATM may be used as its own jointly operated multi-bank ATM.”
MoneyTap is an xCurrent powered platform for both cross-border payments and domestic payments by processing transactions instantly among banking partners. The platform has previously received funding from Sumitomo Mitsui Banking Corporation (SMBC), the second-largest banking institution in Japan.
The institution has been investing in companies owned by SBI holdings to increase the adoption of distributed ledger technology in industries like trade finance and remittance.
It is, however, important to note that MoneyTap doesn’t leverage XRP for settlements. The lack of regulatory clarity about the usage of XRP by banks has seen the blockchain startup focusing their efforts towards money transfer solutions.
However, SBI had previously revealed that it plans on using XRP for remittance in the future.
Japan isn’t the only region where Ripple has a presence. As a part of its strategic expansion, Ripple partnered with remittance platform Azimo, to leverage its On-Demand Liquidity solution (ODL), to provide faster remittance services in the Philippines, using Azimo’s platform.
The blockchain company also added remittance companies Sentbe, Hanpass and WireBarley to RippleNet to allow cross border payments and instant settlements in South Korea. Seongouk Choi, CEO of Sentbe, said:
“Remittance outflows from South Korea have been steadily increasing over the past years to neighbouring countries, especially into Southeast Asia. RippleNet, which enables remittance within seconds to customers who previously experienced difficulty with unintegrated networks or distrust with existing remittance processes, will now be given a whole new world of experience. We will also be able to capture more remittance inflows into Korea, thanks to RippleNet’s growing network.”