Malaysian lender CIMB Group Holdings Bhd will join Ripple’s network (RippleNet), in a strategic partnership which will facilitate access to other RippleNet members and allow CIMB to grow its cross-border payments business. The development was announced by the two companies on Thursday.
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Ripple to boost CIMB’s SpeedSense
CIMB’s SpeedSend will be using Ripple’s technologies to add value to its payment services. It is an online money transfer service offered by CIMB Clicks that allows individual customers to send money directly into the beneficiary account or send cash for beneficiary collection. The group has grown alongside ASEAN and become a regional power-house today.
The solution will enable remittances via corridors such as Australia USA, UK, and Hong Kong. It available in various Southeast Asian markets, including the Philippines, Vietnam, and Thailand, according to its website.
BlockChain to transform the banking industry
There is a growing demand for faster and efficient cross-border payment solutions. Blockchain solutions enable a more transparent, quicker(xRapid does cross-border payments in less than 4 seconds) and lower cost payments experience.
Ripple is seeing a widespread embrace of its technologies with the xCurrent and xRapid solutions. A Memorandum of Understanding (MOU) was signed between Banco Bradesco, one of the largest banks in Brazil and the renowned MFUG Bank, the main banking unit of Mitsubishi UFJ Financial Group (MUFG) earlier this month. This will allow new cross-border payment service between Japan and Brazil.
The financial services industry is keen to experiment with the technology underlying cryptocurrencies.
Ripple to replace SWIFT
The digital asset, XRP, was created to help global remittances and cross-border payments and not just for retail purposes. Ripple says it has more than 100 banks and payment providers on its RippleNet network. It is dedicated in its efforts to compete in international money transfers with the Society for Worldwide Interbank Financial Telecommunication, or SWIFT. According to the Swift website, it has a presence in more than 200 countries and over 11,000 customers.
The total value of global remittances is forecast to rise to $642 billion this year, from $613 billion in 2017, according to the World Bank.
Crypto freefall in markets crash
Bitcoin and the wider cryptocurrency market, including major coins ripple (XRP), Ethereum, had a free fall on Wednesday. Cryptocurrency was down 18 percent ahead of a “hard fork” scheduled for November 15. But XRP beat fierce competitor Ethereum and slid into the second spot after BitCoin.