Mitsubishi Corporation and MUFG (Mitsubishi UFJ Financial Group) announce that they plan on testing Ripple technology for achieving cross-border payments. The whole process involving the international remittance via Ripple (XRP) should be less expensive and faster at the same time.
Mitsubishi to test Ripple’s services
Ripple became already popular for teaming up with meaningful names, and it seems that the trend is very much alive at the moment as well. This last partnership proves this point. There’s also another announcement that was made by Standard Chartered that says they will also take part in the process. Mitsubishi plans to develop this process to the point in which it can become practical for everyday use cases.
The official statement also revealed that transactions would use Singaporean dollars. The money will be sent from Thailand to Singapore, and one of Mitsubishi subsidiaries will use an account in the Ayutaya Bank in order to transact the funds to an account that was previously established, and Mitsubishi Corporation Affiliate owns it. The account is located in Standard Chartered Singapore base.
The current international money transfers use the SWIFT network, but it’s seen as too old school with the most common complaint of taking too much time and lots of fees. This is not even surprising considering that it has to go through various banks to reach the final destination.
Ripple’s advancements are still in bloom
Ripple’s distributed ledger tech has been tested, and the results show faster speeds, lower costs and that it is able to completely eliminate potential fraud compared to more traditional methods of transferring money.
Ripple’s products and technology also managed to catch the eye of large corporations throughout the world. The most significant partnerships that the company announced since 2017 include financial institutions such as SEB, YES BANK, MUFG, Cambridge Global Payments, BBVA, Akbank, eZforex.com, Axis Bank, as well as Star One Credit Union.