In September of last year, Thailand's fifth-largest bank, the Bank of Ayudhya (also known as Krungsri), along with local petrochemical company IRPC, announced the deployment of Krungsri Blockchain Interledger, claiming, "Krungsri is the first bank in Thailand offering the real-time cross border funds transfer service for the business sector through Krungsri Blockchain's Interledger."
During that initial deployment, several successful transfers were made between business partners IRPC and Bouasavanh Power Sole Co., Ltd., according to Kungsri president Noriaki Goto:
"The breakthrough marked a significant change in the financial landscape. It will be a catalyst to utilize financial innovations in delivering the cross border funds transfer service to other business partners. Krungsri can reap benefits from extensive global networks of Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group and one of the world's five largest financial institutions."
Now, Krungsri Bank has partnered with MUFG, Japan's largest bank and the fifth-largest in the world, and Standard Charter Bank Singapore. On May 22, 2018, it announced the successful transfer of a remittance from a Krungsri account, owned by the Mitsubishi Corporation, to a Standard Charter account in Singapore – all using the Krungsri Blockchain Interledger.
Thakorn Piyapan, head of Krungsri's Consumer Group and Digital Banking and Innovation Division, claimed that leveraging the blockchain privately operated by Thailand's fifth-largest bank to create a strategic partnership with MUFG was a bit of a coup: "Krungsri once again achieves a success in the real time cross-border funds transfer service based on Krungsri Blockchain Interledger. This time we have gained trust from Japan-based Mitsubishi Corporation (MC), one of Fortune Global 500 companies."
Exactly how Kungsri will benefit from partnering with MUFG is yet to be seen, but gaining its trust and confidence is a step toward stitching more global financial brands together using distributed ledger technology.
Improving banking through distributed ledger technology is not a new concept. In September of last 2017, the central bank of Brazil tested various blockchain platforms for financial settlement transactions, and in May of last year ETHnews reported on a blockchain pilot launched by the bank of Oman to facilitate cross-border remittance.