- SBI Remit collaborates with Ripple and SBI Ripple Asia to extend its XRP-based international remittance services to the Philippines, Vietnam, and Indonesia.
- Utilizing XRP as a bridge currency allows for faster, low-cost transactions and enhances competitiveness in international remittance.
Leveraging XRP as a Bridge Currency
SBI Remit, an international remittance service subsidiary of the SBI Group, has announced a strategic partnership with Ripple and SBI Ripple Asia to extend its XRP-powered remittance corridors to the Philippines, Vietnam, and Indonesia. This groundbreaking decision capitalizes on Ripple’s robust blockchain and cryptographic technology to revolutionize the landscape of cross-border payments.
Previously, SBI Remit has been using Ripple Payments since 2017 for international transfers. In 2021, it escalated the use of digital assets by incorporating XRP—the native cryptocurrency of Ripple—as a bridge currency for remittances to crypto wallets in the Philippines. Now, the service scope is broadened to include bank accounts in the aforementioned Southeast Asian countries. In these nations, bank-account-to-bank-account transfers dominate the remittance market, thereby presenting a fertile ground for the integration of XRP-powered solutions.
SBI Remit handles the initiation of customer remittance requests. Utilizing the digital asset XRP in real-time, it enables seamless currency conversions. For overseas remittance partners, the company has allied with TRANGLO Pte. Ltd., a leading entity in the money transfer industry. This enables customers to receive funds in their local currencies instantly.
Understanding XRP and Ripple Payments is crucial here. Ripple Payments is a system offered by Ripple that minimizes transaction costs and enables real-time settlement by using XRP as a bridge currency. XRP is a digital asset natively existing on the XRP Ledger, a public blockchain. It boasts a throughput of 1,500 transactions per second and can complete a transfer in just four seconds.
The merits of using XRP as a bridge currency are manifold. Firstly, it allows for swifter and more cost-effective transactions. Secondly, the technology aligns with Ripple’s growing network of partners globally, offering enhanced scalability. Consequently, it fortifies SBI Remit’s competitive edge in the international money transfer business.
The move by SBI Remit aligns with the trend of broader adoption of blockchain technology in financial services. It not only amplifies the use case for digital assets but also serves as an example for others in the rapidly advancing sector of blockchain-based financial solutions.
Thus, SBI Remit’s expansion in Southeast Asia via Ripple‘s technology marks a significant milestone in the maturation of blockchain-based remittance services. It stands as a testament to the adaptability and efficiency that cryptographic assets like XRP can bring to the traditional financial systems.