By
Mayowa Adebajo
April 18th, 2024
Ripple’s partnership with DeeMoney is set to enter the second phase. DeeMoney is currently the only fintech firm with a funds transfer license from the Thai Central Bank.
The partnership between Ripple and DeeMoney is entering a new phase. Sources say that the remittance blockchain company indicated this in a press release yesterday. The new partnership will allow Thais to remit funds to their homeland at cheaper rates.
This comes as Ripple Labs Inc, that widely uses XRP in its solutions, is expanding the network of partners across countries. This is reportedly the second phase of the partnership. Sources indicate that the Thai remittance market is quite lucrative. Thais are expected to send more than $1 billion home this year.
Partnership between Ripple and DeeMoney Improves Remittance Efficiency
The Thais are reportedly quite conservative when it comes to financial services. DeeMoney is just about the only non-banking institution that has special licenses for all sorts of remittances. This puts the institution in a special position.
Thais love taking care of their families. Even from abroad, they are known to share their family love by ensuring that remittances make it home. The new partnership will expand based on the social dynamics of Thai culture.
As such, it comes as no surprise that the new partnership will increase the efficiency remittances are made. This also helps the second stage of the partnership. DeeMoney will further enable outbound transfers to several selected destinations. This, of course, will be based on the rules and regulations of the countries’ central bank.
Ripple seems to be expanding its reach into and around the Asian Corridor. Already, several partnerships provide proof of this. The Azimo partnership is one such example. Its numerous partnerships with South Korean remittance Companies is another.
Ripples’ seeming love affair with MoneyGram is the big fish in the pond that nobody wants to talk about yet. The sheer number of investments and remittances between the two parties is enough to cause concern.
However, as Ripple continues to spread its tentacles across the globe Regulatory issues are a big issue on everyone’s minds.
Ripple Partnerships Are Source of Possible Regulatory Concern
Many within compliance circles are concerned with Ripples’ partnerships with competitors. This has raised an eyebrow or two concerning the ethical nature of such business practices. It is a grey area for blockchain companies as well. Adoption hasn’t taken off as many would have expected. Being a new industry, the blockchain space is still adjusting to the realities of the global business environment. New use-case scenarios need to define how compliance issues will be handled.
For now, though, Ripple Labs seem to have found a new home. This home is in Asia. Asians are known to be able to adapt to new technologies faster than their counterparts in other hemispheres.
This has led to Asian companies being at par with their counterparts in other climes.
The partnership between Ripple Labs and DeeMoney gives the blockchain space a new mantra: Together Everyone Achieves Miracles! (Team).
This could be the paradigm of collaboration rather than competition in the new decade.