Two Major Banks Set To Develop Cross-Border Payment Service Using Ripple’s Technology. In an official press meet on 9th Nov. 2018, Japan’s biggest bank MUFG reported that it has signed a Memorandum of Understanding (MOU) with Brazil’s Banco Bradesco. This is in order to develop a new cross-border payment service based on Ripple technology
Mitsubishi UFJ Financial Group (MUFG) is Japan’s largest banking group which provides extensive services to Brazil and America. Recently, it announced that it would launch its own cryptocurrency. Also, São Paulo’s Banco Bradesco is one of the leading universal banks in the region.
This collaboration happened with the intention of creating and enabling a platform that allows fast, transparent and traceable international money transfers directly and without intermediaries between Japan and Brazil.
According to MUFG, both the firms trust that Ripple Inc. However, the creator of the XRP is the best option to incorporate into their project. This will add economic and competitive benefits. This MOU is only an extension of a previous agreement between the two financial firms, as the relationship between the two banks started way back in 1973 when an MUFG predecessor invested in Bradesco.
“Through this MOU, MUFG Bank has decided to start the collaborative development for cross-border payments between Japan and Brazil, utilizing Ripple’s cutting-edge technology. However, the new payment system – developed by Ripple, a San Francisco-based software vendor – will assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil”.
Two Major Banks Set To Develop Cross-Border Payment Service Using Ripple’s Technology. Due to this agreement, Ripple will remain a leading company in the financial services industry. MUFG has shown significant interest in Ripple’s Blockchain project. During a conference which was published in Sept. by Steven Diep, a representative stated how Ripple will benefit and provide better results compared to using the traditional messaging system SWIFT.
“Today, for many of us, we may have to go through SWIFT and encounter charges; many intermediary banks are part of that. Typically an SLA for fund transfer or movement is between one and three days.
Using technology such as Ripple, we can get that done to something like 30 seconds, which is significantly different and at a cheaper cost as well in terms of moving money between our branches, between our different countries within our network. That’s really important to us.”