The Japanese Bank (MUFG) and Bradesco signed an alliance for the development of a system of cross-border payments between these countries, a product that will be supplied with the help of Ripple. Bradesco is in second place, of the most important banks in Brazil.
With regard to the report released by MUFG, the banking unit of Mitsubichi UFJ Financial Group, the banks signed an agreement to extend the previous agreement made in 2017, which committed both entities to work collaboratively in the development of a system of sending remittances between residents of both countries.
Within the expectations of this new project, Bank MUFG Brazil, the branch of the Japanese bank in Latin America, and Bradesco expect that this system offers a high speed of processing, transparency in all its operations and traceability in its transactions.
This agreement contemplates Ripple as one more member in the development of payment systems. Ripple, like other cryptocurrencies on the market, offers the possibility of making instant international payments through a Blockchain, a service that in the specific case of Ripple, is a price to financial entities as a commercial product.
This alliance between Ripple and MUFG has remained a constant in the development of financial products within the private sector. The entity is among the most important and recognized in Japan, and was one of the first to be established in Brazil. MUFG has been working with Ripple since it began to be part of a consortium of Japanese banks, focused on international payment services.
Ripple in Asia
Beyond Brazil, Ripple is consolidating its business market in Asia, a continent where a new payment system hosted at RippleNet was established, which will provide services to the Thai bank Ayudhya (Krugsri), MUFG and the US bank, Standard Chartered.
There is the talk of an international payment system known as “Krugsri Blockchain Interledger”, which will enable the sending of remittances between Japan and Thailand, as well as soon provide services to Singapore, with the help of Standard Chartered.
The launch of the product was cataloged by the Thai bank as something innovative. However, it is known that the system will not use the XRP as a currency but XCurrent, stating that this is a more popular method in the banking products offered by Ripple.
The project took place in May, in which a certain amount of pilot tests were conducted to verify the effective functioning of xCurrent in the payment system, tests where funds were transferred from Thailand to Singapore and vice versa.
Also, Ripple has managed to consolidate its product to a total of 100 banking entities worldwide, of which a large proportion are located in Asia, including the latest alliances with the South Korea bank, Woori Bank, the bank Thai Siam Commercial and the SBI Holdings entity for transnational payments.
By Samuel Paz
