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MFUG Bank is set to utilise Ripple, as it turns to cryptocurrency for a new payment service that has just been announced.
MUFG Bank is Japan’s largest bank. Its parent, MUFG, is headquartered in Tokyo, has over 360 years of history, and is one of the main companies of the Mitsubishi Group. Banco Bradesco was on the other hand founded in 1943, and it is headquartered in the city of Osasco, in the metropolitan area of São Paulo.
Japan’s premier bank and Banco Bradesco are therefore joining forces for the service, that’ll facilitate cross-border payments between Japan and Brazil.
As MUFG Bank said in a public report:
“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.
In 2017, MUFG Bank said it would join Ripple’s interbank group of leading transaction bankers responsible for building, maintaining, and enhancing rules which ensure operational consistency and legal clarity to support the Ripple global payments network.”
Key ingredient in the whole deal is Ripple. It is true thought that not everyone in the cryptocurrency world is a big fan of Ripple. With their strong focus on improving the financial system, the company has taken a very different path. Despite a lot of opposition from cryptocurrency enthusiasts, the project is a major player in the banking sector.
In fact, 11 of the world’s top banks are already a member of RippleNet. Just to name some fishes in the pond, MUFJ, Bank of America, and Santander are all RippleNet members. That still doesn’t mean they will all make use of Ripple’s technology in the real world, though.
While there is plenty of initial interest, it will take a while until proper projects are developed. As expected, Asian banks are well ahead of the competition in this regard. Many of the banks are also trying to use the ripple protocol in order to transfer money for their clients. As the number of these clients goes on increasing, the value of ripple would also go on increasing. In the future, with the rise in the value of ripple, founders are of ripple are expected be much more valuable as well.
This new deal is just an extension of an existing agreement between the two banks, incidentally, that have a history of working together.
The MOU is an extension of an existing September 2017 collaboration agreement between MUFG Bank and Bradesco, and represents the banks’ most recent business engagement. In fact, the relationship between MUFG Bank and Bradesco dates back to 1973 when an MUFG Bank predecessor bank invested in the Brazilian financial institution. MUFG Bank has had a presence in Brazil since 1919, when Yokohama Specie Bank, Ltd., another MUFG Bank predecessor bank, opened a branch in Rio de Janeiro – the first Japanese financial institution to establish a foothold in Brazil.
Ripple Sets Sights to China Market
American Express has announced that they will be finally entering Chinese market through the joint venture with LianLian Group. This is the first venture to not process payments through the state-controlled UnionPay network.
Both American Express and LianLian Group have been in a partnership with Ripple, and are confirmed to be members of RippleNet. AmEx joined RippleNet with a vision to aid Small and Medium Enterprises with moving money late last year. LianLianPay on the other hand, joined the network in February this year and has over 150 million registered customers.
The venture is also a licensed company which now has about 150 million registered users in China today. LianLian makes use of Ripple blockchain to settle China’s e-commerce payments. Not only that, LianLian Group now settles Chinese cross-border payments through the use of Ripple’s xCurrent.
The Central bank called this approval a significant step toward opening up China’s bank card market to foreign investors, and they also confirmed that it would continue to ease in an orderly way market access for clearing and settlement institutions.