SBI Remit Co., Ltd., a leading player in the international money transfer service sector, has recently announced an expansion of its partnership with Ripple and SBI Ripple Asia. This collaboration aims to introduce international remittance services using the digital currency XRP as a bridge currency to bank accounts in the Philippines, Vietnam, and Indonesia.
According to the official press release, SBI Remit has been utilizing Ripple Payments provided by Ripple for its international remittance services since 2017. By incorporating a solution that utilizes XRP as a bridge currency between two legal currencies, SBI Remit became the first company in Japan to offer an international remittance service with crypto assets.
This is not the first venture of SBI Remit into XRP-based remittances. Earlier this year, the company launched a service directed toward digital wallets in the Philippines, establishing its status as a pioneer in leveraging XRP as a bridge currency for international remittances in Japan.
The newly unveiled scheme is designed to streamline the international remittance process. As detailed in the press release, SBI Remit sends a customer’s remittance request, and SBI VC Trade responds in real time by sending XRP. This dynamic approach is made possible through a strategic alliance with Tranglo Pte. Ltd., a long-term partner of Ripple. This alliance ensures that customers receive their remittances in their local legal currency.
SBI emphasized the advantages of using XRP as a bridge currency, stating that it enables quick and low-cost money transfers. Furthermore, XRP’s scalability allows users to easily send money to Ripple’s partners worldwide, which is expected to enhance competitiveness in the international remittance business.
The decision to focus on the Philippines, Vietnam, and Indonesia was a strategic one. These countries receive a significant share of remittances directed to bank accounts, making them ideal candidates for adopting XRP. SBI Remit anticipates that the introduction of this XRP-based remittance service will further accelerate cryptocurrency adoption in these nations.
In a statement, Yoshitaka Kitao, the chairman and CEO of SBI Holdings, shared his excitement about the development, highlighting the company’s commitment to revolutionizing international remittance services. The press release also notes that while the current service focuses on three Asian countries, SBI Remit plans to expand its reach by partnering with Ripple and other fintech companies. The company aims to increase the number of countries where remittance is possible and expand services for corporate transactions and inbound transactions.
Currently, XRP is trading at $0.5007.
In conclusion, SBI Remit’s expanded partnership with Ripple and SBI Ripple Asia marks a significant milestone in the international money transfer service sector. By utilizing XRP as a bridge currency, SBI Remit aims to provide quick, low-cost, and efficient international remittance services to bank accounts in the Philippines, Vietnam, and Indonesia. This strategic move is expected to boost cryptocurrency adoption in these countries and pave the way for further expansion in the future.
