In a strategic move, SBI Remit, the international money transfer branch of SBI Group, and blockchain pioneer Ripple have unveiled their groundbreaking collaboration, forming a joint venture known as SBI Ripple Asia. The main thrust of this venture is to introduce Ripple's XRP-enabled remittance solution to bank accounts in the Philippines, Vietnam and Indonesia, with implementation commencing this month.
SBI Remit has been utilizing Ripple's innovative services for cross-border money transfers since 2017. In a pioneering move in 2021, they introduced a crypto solution powered by Ripple, marking the first-ever international money transfer service in Japan to employ XRP as an intermediary currency between two legal currencies and transfer funds to a crypto wallet in the Philippines.
XRPを活用した国際送金ODLにおいて、日本からの送金可能国拡大を発表、フィリピンに次いでベトナム・インドネシアも送金可能国へ追加となりました。— 近藤 智彦@SBI VC Trade (@tomohiko_kondo) September 6, 2023
Building on this success, the expansion will now encompass bank accounts in three Southeast Asian nations. The Philippines, Vietnam and Indonesia were selected due to their high proportion of remittances to bank accounts, making them ripe for the adoption of this groundbreaking service.
Under the new arrangement, SBI Remit will process customer remittance requests in real time by sending XRP. They have partnered with Tranglo, a prominent remittance company, to ensure that recipients can easily receive funds in their local currency.
Using XRP as an intermediary currency offers the advantages of speed and cost effectiveness. It also enhances scalability, allowing funds to be transferred to Ripple's partners worldwide, boosting SBI Remit's competitiveness in international remittances.