Mitsubishi Corporation and Mitsubishi UFJ Financial Group (MUFG) announced their intention to use the Ripple (XRP) distributed ledger technology (DLT) to demonstrate the international transfer. Cross-border settlement in accordance with Mitsubishi reduces the cost and settlement time of the transaction. British Standard Chartered will also become the main participant, it was aired in the remittance test.
“We are striving for practical use for several years.” – said in a statement.
The statement also indicates that Singapore dollars will be transferred from Thailand to Singapore, adding that a subsidiary of Mitsubishi Corporation will conduct transactions from an account located in the local Ayutaya Bank under MUFG, to the account established by Mitsubishi Corporation Affiliate at Singapore’s base in Standard Chartered.
“In the current international remittance, we use the network of the International Banking Communication Association (SWIFT), in which financial institutions of each country participate. In many cases, it often passes through several banks, it requires a large fee and usually takes a several days to transfer.”
Talking about Ripple (XRP) wonderful performance using cross-border remittance, the statement infers that the distributed registers technology which was used for demonstration experiments was developed by USA based Ripple technology, and does not give room for data tampering that results in fraud.
By adding to the statement, the protocol is cheaper and very fast compared to other remittance protocols used by conventional banks.
Ripple announced that Mitsubishi UFJ is among the 10 customers implementing Ripple technology a year ago.
“Ripple is proud to announce the addition of 10 new customers to our growing global network. These financial institutions include SEB, MUFG, BBVA, Akbank, YES BANK, Axis Bank, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, smaller innovative banks and payment service providers (PSPs).”
CEO of the Tokyo-Mitsubishi Bank – UFJ Hirofumi Aihara, said at the time: “We are very pleased to work with Ripple (XRP) to provide new types of payment services to change the experience of our customers, using the power of blockchain technology. To demonstrate our commitment to technology, we join the Japan Banking Consortium to work with other Japanese banks to move to the commercial use of the global Ripple network. I really believe that we can bring our experience from the Japan Banking Consortium to the Global Payments Steering Group.”
Recently, the partnership between Ripple and Santander Bank has created an active application for cross-border settlements, called One Pay FX. The application is special for the fact that it will settle the payment in an instant, if used in Europe, and takes one or two days if used outside the continent.