5th-Largest Southeast Asian Bank Joins Ripple’s Blockchain Network RippleNet

| Updated
by Sofiko Abeslamidze · 3 min read
5th-Largest Southeast Asian Bank Joins Ripple’s Blockchain Network RippleNet
Photo: CIMB Malaysia / Facebook

The RippleNet frenzy continues to win over the regions of Asia, as starting from now, the company streamlines cross-border payments of Malaysian banking group CIMB.

The disruptive technology of RippleNet absorbs wide popularity, being dubbed as the Ripple-produced alternative for SWIFT. Originally devised to maintain international money transfers, the SWIFT system is losing its shine at the forefront of technological revolution rolling out in the banking industry.

On the first place, it happens because banks and financial institutions got fed up with hefty commission and frequent delays of the SWIFT messaging, and ultimately they started to recognize the potential offered by the RippleNet system.

The other thing is that SWIFT is inevitably becoming somewhat of the past, while the RippleNet is taking over a role of the main global provider of seamless cross-border payments.

As well as cryptocurrency, the technology of RippleNet began to expand from Asia. Previously, Coinspeaker reported that a Malaysian fintech startup has successfully completed the first ever live cross-border transaction out from Malaysia to Europe in just few hours.

The transaction enabled a retail user to convert Malaysian national currency ringgits (MYR) to Euros (EUR) at a significantly lower cost compared to traditional transfer services like SWIFT.

CIMB Joins RippleNet Supporters

Today the RippleNet frenzy has encompassed another Malaysian remittance operator, as the company unveiled a recently signed partnership with CIMB Group Holdings Bhd.

Upon the agreement, the Malaysian banking group is allowed to reap the RippleNet benefits for international money transfers. While Ripple offers several payments solutions, one of which uses the XRP crypto token, the firms did not disclose which is being utilized by CIMB.

It is only known that the RippleNet is expected to boost the speed and cost-efficiency of cross-border payments.

Moreover, the company is said to contribute to the launch of new payment corridors that will improve consumer access to cross-border remittances, both inbound into ASEAN (Association of Southeast Asian Nations) region and outbound to other countries.

RippleNet to Improve SpeedSend Remittance System

As part of the deal, the RippleNet technology will be used to better CIMB’s existing proprietary remittance system, SpeedSend. Some sort of the CIMB-owned WesternUnion, SpeedSend currently serves individuals remitting to a number of predominantly Asian countries, including the Philippines, Japan, Singapore, Thailand and India.

The SpeedSend customers are allowed to send and receive money at the widespread company’s offices by signing on a simple form and showing a photo identification.

As soon as the RippleNet integration will be completed, CIMB intends to faster the remittance system and extend the solution to other use cases across the Group.

In the meanwhile, World Bank indicates the growing demand for cross-border payment solutions, particularly stressing the regions of Asia. The projection reveals that remittances to Southeast Asia will grow to US$120 billion by the end of 2018.

Considering that fact, CIMB’s collaboration with the RippleNet company is about to be fruitful, since in addition to secure and fast cross-border payment, the integration of Ripple’s blockchain technology will enable savvy remittances over corridors with the RippleNet-friendly countries including Australia, USA, UK and Hong Kong.

Notably that the list of Ripple’s technology adopters continues to broaden. Last month international money transmitter, Viamericas and UK-based e-payment company, MoneyNetInt joined the bandwagon.

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Sofiko Abeslamidze

Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.

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